OIA Response: Summary of factors determining CPB expenditure

Request for a summary of factors determining CPB expenditure for the 2016/17 and 2017/18 financial years, based upon previously published information in PHARMAC’s annual reports.

13 March 2019

[Name and contact details redacted]

Dear [Name redacted]

REQUEST FOR INFORMATION

I refer to your request for information dated 10 January 2019 under the Official Information Act 1982 (OIA) and my subsequent letter to you dated 13 February 2019, which stated a decision would be made on your request by 13 March 2019. I can now respond to your request as follows.

You requested a summary of factors determining CPB expenditure for the 2016/17 and 2017/18 financial years, based upon previously published information in PHARMAC’s annual reports. With the exception of the “full-year impact” column, the information you have requested is in the tables set out in this letter.

Summary of combined pharmaceutical expenditure 2016/17 ($ million)

 

Expenditure

Impact in 2016/17

Expenditure for year ended 30 June 2016

800.0

 
     

Volume changes

   

Volume increases

 

40.2

Volume decreases

 

-42.9

New Investments

 

44.7

Residual Investments

 

35.9

Net volume changes

77.8

 
     

Subsidy changes

   

Subsidy increases

 

19.6

Subsidy decreases

 

-45.3

Savings from annual tenders

 

-7.8

Savings from alternative commercial proposals

 

0

De-listings

 

-1.8

Residual subsidy increases from 2015/16

 

21.4

Residual subsidy decreases from 2015/16

 

-24.9

Net subsidy changes

-38.9

 
     

Net increase

39.0

 

Change in DPF income

8.3

 

Change in additional items not included above

6.0

 

Total expenditure for year ended 30 June 2017

849.6

 

Summary of combined pharmaceutical expenditure 2017/18 ($ million)

 

Expenditure

Impact in 2017/18

Expenditure for year ended 30 June 2017

849.6

 
     

Volume changes

   

Volume increases

 

43.0

Volume decreases

 

-55.0

New investments

 

40.2

Residual Investments

 

36.5

Net volume changes

64.0

 
     

Subsidy changes

   

Subsidy increases

 

14.3

Subsidy decreases

 

-28.2

Savings from annual tenders

 

-5.9

Savings from alternative commercial proposals

 

0

De-listings

 

-3.9

Residual subsidy increases from 2016/17

 

24.3

Residual subsidy decreases from 2016/17

 

-22.0

Net subsidy changes

-21.4

 
     

Net increase

42.5

 

Change in DPF income

-4.7

 

Change in additional items not included above

-2.5

 

Total expenditure for year ended 30 June 2018

870.8

 

PHARMAC is unable to generate the “full-year impact” column as provided in previously published annual reports. This is because the code syntax for this procedure has changed, and we do not have the ability to update it in a way that works with our current software. While PHARMAC would have created and provided this information if possible, PHARMAC considers that there is no obligation under the OIA to create the information in this respect.

Providing the information given above in response to your request has required substantial PHARMAC resource. Please note that any similar information request may require PHARMAC to determine its status under the OIA and any applicable reason for refusal.

I trust that the provision of this information answers your queries, if you have any further questions please feel free to contact us again.

Yours sincerely

[Alison Hill's signature]

Alison Hill
Director, Engagement and Implementation