Proposed update to Pharmac’s Operating Policies and Procedures Manual
What we’re proposing
Pharmac is consulting on an updated Operating Policies and Procedures Manual (the Manual) that explains how it carries out its statutory role and functions.
The role of the Manual
The Manual explains, at a high level, how Pharmac operates and how decisions are made and implemented. It covers decision‑making, consultation and engagement, funding, the Pharmaceutical Schedule, commercial processes, and reimbursement. The Manual is referenced in supplier contracts and is a resource for clinicians, suppliers, and other sector partners.
2017 Operating Policies and Procedures Manual [PDF, 526 KB]
Why are we updating the manual?
The Manual is being updated to more accurately reflect Pharmac’s current work and recent changes to the wider health system.
The previous Manual was last published in 2017 and needs to be updated to reflect legislative and system changes. The Manual also needs to be updated to better reflect Pharmac’s role and operating environment.
The updated Manual outlines Pharmac’s role processes and ensures they reflect current legislation and today’s health system. It clearly sets out areas of work that are underway but were not captured in the previous Manual, such as consultation and engagement, equity, research, and how some decisions are implemented.
The update also about making the Manual clearer and easier to understand. Updating the Manual does not change how Pharmac operates in practice, including how medicines and other treatments are assessed, prioritised, or funded.
Who we think will be interested
- Clinicians
- Suppliers
- Other parts of the New Zealand public health system.
About the Draft Operating Policies and Procedures Manual
The Manual covers the ways that Pharmac operates. The proposed revised edition has five sections.
Section one covers the strategic setting
This includes:
- Pharmac’s objectives and functions
- consultation and engagement
- the strategies Pharmac adopts to achieve its statutory objectives
- Pharmac’s decision-making framework the Factors for Consideration
- the role of expert advice, equity, the handling of information, responsible use initiatives, and research.
Section two covers the Pharmaceutical Schedule
- the Pharmaceutical Schedule (that records most of Pharmac’s listing decisions and details products available for reimbursement)
- how Pharmac might implement decisions outside of the Schedule.
Section three focuses on funding
This includes:
- funding applications
- funding criteria
- funding exceptions
- implementation of funding decisions.
Section four covers commercial processes
This includes:
- contracting
- competitive procurement processes
- bundling
- rebating.
Section five focuses on reimbursement
This includes how Pharmac reimburses pharmacies and other organisations for the cost of pharmaceuticals used in the health sector (excluding devices). This includes both subsidies and restrictions on reimbursement.
About the proposed revised edition
We have worked to ensure that this edition is both high-level and principles-based, while also being complete. We have aimed to eliminate unnecessary detail, while ensuring that the full breadth of current practices is covered.
To give feedback
Send us an email: consult@pharmac.govt.nz or complete our online form by 5 pm on 26 May 2026.
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