
Consumer And Patient Working Group To Help Pharmac Reset
Pharmac has committed to a 12-month reset programme to become a more outward-focussed and transparent organisation. This is in response to multiple external reviews over the last few years which sought transformational change in Pharmac.
The new working group, made up of the consumer and patient community, will decide what Pharmac focuses on for the reset programme, taking a hands-on role in the delivery of the work to ensure it reflects consumers' needs, values, and perspectives.
Acting Pharmac Chief Executive, Brendan Boyle, said Dr Mulholland was selected by the patient advocacy community to lead the group, and brings a lot of mana to the role.
'We are grateful that Malcolm, and the other nine members of the working group, have offered to partner with us to help us get the Pharmac reset work right.'
Dr Mulholland said, 'We've waited a long time for this opportunity. The work that Pharmac does is vitally important for the health of patients and their families, and this is why getting Pharmac to work as well as it can, will be the focus of the working group.'
The working group had their first meeting on Monday 21 July at the Pharmac offices in Wellington. They finalised the group's terms of reference, confirmed the approach for the reset programme, and agreed the first set of actions to focus on.
The Consumer and Patient Working Group members are:
Dr Malcolm Mulholland MNZM – Patient Voice Aotearoa
Libby Burgess MNZM – Breast Cancer Aotearoa Coalition
Tim Edmonds – Leukaemia and Blood Cancer NZ
Chris Higgins – Rare Disorders NZ
Francesca Holloway – Arthritis NZ
Trent Lash – Heartbeats Charitable Trust
Gerard Rushton – The Meningitis Foundation
Rachel Smalley MNZM – The Medicine Gap
Tracy Tierney – Epilepsy NZ
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NZ Herald
2 days ago
- NZ Herald
Pharmac must shift from being a gatekeeper of cost to an enabler of health
Their tireless advocacy, amplified by journalist Rachel Smalley's sharp campaigning and the lived experiences of thousands of New Zealanders, has helped shift this conversation from the margins to the mainstream. The public mood is shifting. Pharmac, once internationally respected for its fiscal restraint, now faces growing pressure to demonstrate its relevance in a rapidly evolving healthcare environment. How Pharmac can transform into a health enabler: Cecilia Robinson writes that it's about reimagining what Pharmac is here to do. Photo / Getty Images The question is no longer whether Pharmac is doing the best it can with what it has, but whether its model is still fit for purpose. As someone who moved from Sweden, where access to modern treatments is standard, I was horrified to discover that many New Zealanders must turn to Givealittle to fund medicines available freely elsewhere. It's not just unfair. It's unthinkable. Therefore, the appointment of Natalie McMurtry as Pharmac's new chief executive comes at a critical time. While her background in Alberta's health system brings relevant experience, the task ahead is not just about leadership, it's about reimagining what Pharmac is here to do. Pharmac must shift from being a gatekeeper of cost to an enabler of health impact. Its role can no longer be confined to doing more with less. The public expects more transparency, compassion and to access medicines freely available in countries such as Australia, Ireland and Singapore. Pharmac's original model was developed in a different era, when the core challenge was controlling pharma companies, who were gaming the system, and skyrocketing costs. These issues are still important, but cost-effectiveness, particularly as measured through QALYs (Quality-Adjusted Life Years), is now too narrow a lens. It doesn't account for broader system benefits: medicines that prevent hospitalisation, help people stay in work, reduce caregiving pressure or support mental wellbeing. New Zealand's medicine gap persists despite a $604 million investment, with patient advocates urging change. Photo / 123rf We need to move towards a broader, health-impact framework. Medicines should not be viewed in isolation as a standalone budget line but as levers that can help to reduce pressure across the entire system. They reduce demand on emergency departments, improve quality of life and help address chronic conditions before they escalate. This evolution in thinking requires stronger alignment between Pharmac and Health New Zealand Te Whatu Ora. As integrated care becomes the national direction, the way we fund medicines must reflect how those medicines contribute to overall system efficiency and patient outcomes. Pharmac's current structure, operating within a ring-fenced budget, has created artificial constraints that limit innovation. While it has helped secure competitive prices, it has also locked us into a rigid, risk-averse model that can't keep pace with the demands of modern medicine. To stay relevant, Pharmac must adopt smarter, more flexible funding approaches. This includes: ● Outcomes-based pricing: linking funding to real-world results, so high-cost drugs are only paid for if they work ● 'Access equity' funding: targeted budgets for treatments that don't fit traditional metrics, such as rare disease therapies ● Public-private co-investment: partnerships to enable earlier access to emerging or breakthrough treatments These models are already in use globally. New Zealand, with its small scale and centralised health system, is well placed to adopt and lead in this space but doing so will require political will and cross-agency collaboration. One of the strongest criticisms of Pharmac is that its decision-making too often overlooks the most marginalised. Equity must not be treated as a footnote, it must be central to how decisions are made. Pharmac must evolve to meet New Zealand's healthcare needs, advocates say. Photo / Getty Images That means asking tough but necessary questions: are Māori and Pacific patients missing out? Are people in rural communities being reached? Are high-cost treatments for small groups, such as children with rare conditions, being given a fair assessment? True equity means seeing value not only in volume, but in fairness. We must move away from one-size-fits-all measures of utility and toward a model that recognises the value of treating the under-served, the isolated and the overlooked. Pharmac has made efforts to improve its equity lens, but these steps need to be embedded and expanded. This includes involving communities earlier in decision-making, co-designing criteria for assessment and setting explicit targets to reduce access gaps. If there is one thing Pharmac must urgently regain, it is public trust. Right now, too many New Zealanders feel shut out of its processes, confused by its rationale and left behind by its pace. Trust won't be rebuilt through a communications campaign. The Pharmac chair, Paula Bennett, is pushing through some important reforms which require a fundamental shift in how Pharmac relates to the people it serves. That means: ● Transparent processes that clearly explain what's funded and why ● Better engagement with patients, clinicians, researchers, and advocacy groups ● A willingness to admit when the system isn't working and to try new things The leadership of new CEO McMurtry offers an opportunity to reset that relationship. Her described strengths, quiet achievement, systems thinking, and clinical experience, will need to be paired with openness, boldness, and humility. It's encouraging to see the appointment of Dr Dale Bramley as CEO of Health New Zealand Te Whatu Ora. Bramley brings deep experience as a public health physician and former chief executive of the Waitematā District Health Board, along with a strong understanding of the health system from both clinical and leadership perspectives. Dr Dale Bramley has been appointed CEO of Health New Zealand Te Whatu Ora, bringing extensive public health and leadership experience to the role. Photo / Dean Purcell His appointment provides a valuable opportunity to strengthen alignment between Health New Zealand Te Whatu Ora and Pharmac. As the country moves towards integrated care as the national model, our approach to funding medicines must also evolve, recognising the role modern medicines play in improving patient outcomes and driving overall system efficiency. Pharmac's future must align with where the health system is heading: more integrated, more proactive, more preventive. Medicines that enable self-management, support digital care, or reduce reliance on acute services are now core to how we deliver better outcomes. Health systems globally are shifting from volume to value. New Zealand must do the same. That requires moving beyond simple funding silos and embracing joined-up thinking, where medicine access is seen as a strategic investment, not just a cost centre. Pharmac has a unique role to play in this shift. But to fulfil it, the agency must move from cautious gate keeping to confident leadership. It must be willing to challenge legacy assumptions and champion bold ideas that better serve the public good. The real test is whether it can lead to a smarter, fairer, more compassionate approach to medicine access – one that reflects the realities of modern New Zealand, embraces equity, and evolves as science and society change. The opportunity is real. With the right leadership, the right frameworks and the courage to think differently, Pharmac can become not just a funding body but a force for health transformation. But that will take more than good intentions. It will require bold decisions, structural reform and a clear commitment to doing things differently. Tinkering at the edges won't cut it. The time for real change is now. Ultimately, Pharmac's legacy won't be defined by how tightly it managed its budget. It will be judged by how well it met the health needs of its people.


Scoop
6 days ago
- Scoop
Pharmac Continues To Engage With Consumers
Associate Minister of Health Associate Education Minister David Seymour welcomes the establishment of Pharmac's new consumer working group to help Pharmac help reset how it works with health consumers. "For many New Zealanders, funding for pharmaceuticals is life or death, or the difference between a life of pain and suffering or living freely,' Mr Seymour says. 'My expectation is that Pharmac should have good processes to ensure that people with an illness, their carers and family, can provide input to decision-making processes. This is part of the ACT-National Coalition Agreement. 'Pharmac hosted a Consumer Engagement Workshop in March. Patients and advocates voiced their hopes at resetting the patient – Pharmac relationship. Pharmac published a report on the findings from the workshop. 'The report recommended that the Board invite workshop participants, in association with the wider consumer-patient representative community, to select a working group. The group would work with Pharmac's Board and management to reset the relationship between Pharmac and the consumer/representative community. 'The patient advocacy community selected Dr Malcolm Mulholland to lead the consumer working group. He has worked with consumers to select the other members of the working group. These members represent patients with a wide range of health conditions. They are named at the end of this release.' 'We've waited a long time for this opportunity. The work that Pharmac does is vitally important for the health of patients and their families, and this is why getting Pharmac to work as well as it can, will be the focus of the working group,' Dr Mulholland says. 'The consumer working group met for the first time yesterday to confirm the approach for the reset programme and agree the first set of actions. I look forward to hearing about their progress,' Mr Seymour says. 'I'm pleased to see the Board take the opportunity to continue to prioritise expanding opportunities and access for patients and their families by expanding access to more medicines for more groups. 'The working group reflects our commitment to a more adaptable and patient-centred approach. It follows my letters of expectations, the consumer engagement workshop, last year's Medicines Summit, and the acceptance of Patient Voice Aotearoa's White Paper as actions to achieve this. 'The Government is doing its part. Last year we allocated Pharmac its largest ever budget of $6.294 billion over four years, and a $604 million uplift to give Pharmac the financial support it needs to carry out its functions - negotiating the best deals for medicine for New Zealanders.' The consumer working group members are: Dr Malcolm Mulholland MNZM – Patient Voice Aotearoa Libby Burgess MNZM – Breast Cancer Aotearoa Coalition Tim Edmonds – Leukaemia and Blood Cancer NZ Chris Higgins – Rare Disorders NZ Francesca Holloway – Arthritis NZ Trent Lash – Heartbeats Charitable Trust Gerard Rushton – The Meningitis Foundation Rachel Smalley MNZM – The Medicine Gap Tracy Tierney – Epilepsy NZ Deon York – Haemophilia NZ

RNZ News
6 days ago
- RNZ News
New working group looks to demystify Pharmac fund
New Zealand has over 100 medicines on the Options for Investment (OFI) List, which is priority medicines that are waiting to be publicly funded. Photo: 123rf Drug buying agency Pharmac is bringing patients and consumers to the table. It has announced a new Consumer and Patient Working Group after years of reviews calling for major change . The group, made up of the consumer and patient community, will help steer a 12-month reset, aimed at making Pharmac more open and responsive. It will decide what Pharmac focuses on for the reset programme, taking a hands-on role in the delivery of the work to ensure it reflects consumers' needs, values, and perspectives. Patient advocate, Dr Malcolm Mulholland, has been appointed Chair of the working group. He told Morning Report he hopes the group will provide clarity on how Pharmac chooses what drugs it funds. "People just do not know how Pharmac arrives at the decisions they do and why it takes so long. I think that's probably the major bugbear that patients experience, and that's one area that we are very keen to get involve with and try and improve it." Medicine NZ found on average, applications for funding have been with Pharmac for six years. New Zealand has over 100 medicines on the Options for Investment (OFI) List, which is priority medicines that are waiting to be publicly funded. The cost of clearing this list is estimated to be $1 billion. According to Medicine NZ, 1.4 million people would benefit from the medicines. Dr Mulholland, who has been apart of petitions to fund medicines taken to Parliament, criticised the need for patients to publicly put pressure on politicians to fund drugs. "It is not a healthy process, and it's not how overseas jurisdictions like Pharmac operate, it's actually very unusual," he said. "That shows us that the Pharmac process is sick, so to speak, and we need to improve it and get it well." Dr Mulholland said we need to improve the way Pharmac approves a medicine's funding in a much shorter time. He added government needs to fund Pharmac properly. Dr Malcolm Mulholland. Photo: RNZ / Jimmy Ellingham On Monday, Associate Health Minister David Seymour told Pharmac to modernise or it would fall behind . In a letter of expectations, Seymour said to the agency to "innovate and optimise" to increase access to medicines and continue the "positive culture shift" that's been underway, such as exploring ways to "utilise AI". His expectations also included to be more proactive in engaging with stakeholders and continue to involve patients early in the process. The Consumer and Patient Working Group members are: