PHARMAC 2020/21 Quarter 3 Performance Report
PHARMAC is now nine months through the first year of delivery of our new four-year strategic direction and, despite the challenge of an ambitious work programme, we are doing well achieving our goals. Three of the six strategic priority areas are on track at this time, with no priority rated red. Most initiatives are on track with some delayed for a variety of reasons, but we are confident that many will be achieved by the end of quarter four.
We achieved some significant milestones over the third quarter. These included:
Priority: Enhance Key Functions
- During the quarter we completed our initiative to plan and scope the programme of work to improve planning and implementation practices for our commercial activities. With a Lead in place for this workstream we have also been able to bring forward delivery of Category Planning and held a pilot workshop in March.
Priority: Equitable Access and Use
- Developed a draft equity assessment tool and commenced testing with a small group of clinical advisors.
Priority: Medical Devices
- Over the quarter we made significant progress towards our SPE target to have at least $400 million of DHB spend under national contract. We are confident this will be achieved in quarter four.
- The first DHB Strategic Medical Devices Advisory Group was held.
Priority: Data and Analytics
- A first medicine has been chosen for analysis, internal governance at the operational and strategic levels have been confirmed, and a key external resource has been secured to progress this work.
Priority: Relationships and Partnerships
- Over the last quarter we received the final report from the stakeholder engagement survey.
Priority: Te Whaioranga
- Progress continued in developing a Te Tiriti o Waitangi organisational policy.
Priority: People & Capability
- Finalised the refresh of our organisational values.
Over the next quarter we are looking forward to:
- Establishing the Māori Advisory Rōpū.
- Developing an action plan to address gout medicine access inequities. This will include engagement with others already doing national level work in gout management such as Health Navigator, Health Literacy NZ, Counties Manukau DHB, Gout Action Aotearoa and Ministry of Health.
- Engaging with DHBs on our proposed approach to capital equipment as part of our medical devices work.
- Progressing the Health Outcomes work, which is expected to result in the first report on a pilot chemical, selecting the next chemical for analysis, and developing a revised approach to continuing this work based on learnings from the initial piece of work.
- Working with external PR agencies to support us with consumer targeted campaigns, such as diabetes treatments and brand changes.
- Embedding new organisational values following significant work over the last six months.
- Assessing PTAC members’ equity capability in relation to Māori and other priority populations. Testing the tool with a small group and implementing with the whole
Strategic Priority: Enhance key functions (EKF)
We continuously improve the way we work to deliver maximum value to New Zealanders
This Strategic Priority has shifted from Green during quarter two to Amber in quarter three because the planned activities will be partially achieved for the year. We consider most of the initiatives in the programme can likely be achieved with a concerted effort over quarter four, though we will not be able to complete the work for Public Preferences and Changes to Dispensing Arrangements. This has been somewhat outside of PHARMAC’s control.
The plan to progress a Public Preferences survey will be pushed out to the second half of 2021/22 as it was not felt appropriate to undertake this at the same time as the external review is underway. Proposed changes to dispensing arrangements have been reliant on health sector engagement, which has not been possible due to sector focus being on COVID-19.
During the quarter we completed our initiative to plan and scope the programme of work to improve planning and implementation practices for our commercial activities. With a Lead in place for this workstream we have also been able to bring forward delivery of Category Planning and held a pilot workshop in March. The team have also collected data for the EKF Statement of Intent performance measures. These are attached as Appendix Two.
One of the focus areas in EKF over the final quarter will be to develop a package of work for the Responsible Use workstream. A framework has been agreed internally that categorises our work into activity to Prevent, Detect and Respond to under, over, or misuse of medicines and medical devices. Work is now underway to populate a longer-term work programme.
Strategic priority: Equitable access and use
We enable equitable access to medicines and related products by influencing availability, accessibility, acceptability, and appropriateness
Overall, this programme is on track, however some initiatives are experiencing slippage in timeframes due to delayed engagement from our stakeholders and competing demands for key internal resources. We expect the overall rating to remain Amber for this programme until we have completed work to develop a channel for disseminating baseline measures. We are working towards making this happen in quarter four.
Over the quarter we completed the data insight reports for access to gout preventive medicines by Māori and Pacific peoples. We have completed an analysis of cardiovascular medicines and are on track to complete data insights on, asthma and chronic obstructive pulmonary disease (COPD) and diabetes by the end of the year.
Over the coming quarter the focus for the programme will be:
- Develop an action plan to address gout medicine access inequities. This will include engagement with others already doing national level work in gout management such as Health Navigator, Health Literacy NZ, Counties Manukau DHB, Gout Action Aotearoa and Ministry of Health
- Implement the equity capability needs assessment tool with clinical advisors.
- Complete engagement with health providers who participated in the Whakakotahi projects and external dissemination of findings.
- Engaging with the Responsible Use Advisory Group about how the gout insights can be used in our contract with Matui to influence primary care.
- Completing the final parts of the first baseline report on medicines access equity for priority conditions and developing the online portal for their dissemination.
Strategic priority: Medical devices
We drive better value and more consistent access to hospital medical devices
Work on developing our operational approach to the different aspects of investment management has progressed but has taken longer than anticipated. New issues and complexities have cropped up but are being worked through. In addition, pressure on subject matter expert time due to core business priorities has also slowed progress. As a result, external engagement has been delayed, which was also a pragmatic response to the lack of availability of DHB staff following the sector distraction caused by COVID-19.
Despite the delay in external engagement, all initiatives are rated Green and on track for revised timeframes.
Over the quarter we made significant progress towards our SPE target to have at least $400 million of DHB spend under national contract; we are confident this will be achieved in quarter four. The first DHB Strategic Medical Devices Advisory Group face to face meeting was held. This group has been formed to ensure PHARMAC and DHB leadership are aligned in addressing the transitional and long-term issues associated with the PHARMAC medical device programme. The Chair of the DHB Chief Operating Officers Group has offered to facilitate using the national Chief Operating Officers Group to identify subject matter experts for our external engagement activities.
The focus for this Strategic Priority over the next quarter is to recruit a dedicated project manager. This will provide the project with a greater level of planning and confidence on delivery. For our focused engagement activity, we plan to:
- Share our proposed approach to capital clinical equipment.
- Prepare for sharing our proposed approaches to health technology assessment