Flashcards in PHARMAC Deck (4):
PHARMAC’s statutory objective is
maximise health gains from a fixed budget
to secure for eligible people in need of
pharmaceuticals the best health outcomes that are reasonably achievable from
pharmaceutical treatment and from within the amount of funding provided.
PHARMAC ranks all proposals against some key criteria. There are
criteria” A key point is that we do not “just use cost
utility assessment” (may also be called cost-benefit analysis) we also apply other
elements into our ranking. A very good answer would set out that we consider Need,
Health Benefits, Suitability and Costs/Savings at the level of individual,
family/whanau and health sector. A very good answer may also take into account that
ranking is initially done by cost effectiveness and then adjusted for other factors.
PHARMAC does not have a specific cost effectiveness threshold at which
investments are made. Instead the threshold for investments, choice of investment
option occurs naturally by
moving down the list of possible “new investments” which
are ranked from best to worst (sometimes called the priority list) until its budget is
exhausted. As well as cost, PHARMAC takes into account benefit, other “factors for
consideration” (a formal set of criteria) and strategic/practical aspects.