Southern Cross to cover pharmacy surcharges for members

Southern Cross to cover pharmacy surcharges for members

The Pharmacy Guild of New Zealand (the Guild) appreciates the support Southern Cross Health Society is showing community pharmacy by reimbursing any surcharges their members with eligible policies have incurred from a pharmacy.

Community pharmacies around New Zealand are currently in a position where 5 out of 10 medicines are dispensed at a net loss and this continues to grow. A number of pharmacies are being forced to pass on un-met costs to patients where the medicine margin is insufficient to cover the full cost of getting that patient’s medicine into the pharmacy. Under the current funding model this is the only choice for many pharmacies to remain viable and to ensure the valuable services they provide to patients in their communities remain available.

Southern Cross has agreed to cover surcharges their members incur from pharmacies due to this issue. Guild Chief Executive, Lee Hohaia says “We are extremely appreciative of this show of support from Southern Cross. At this point in time support from the wider health sector is extremely valuable and demonstrates the value other health care providers see in community pharmacy services.

“We also appreciate Southern Cross alleviating this financial burden from their members. Community pharmacy does not want to pass on extra charges to patients but for many pharmacies there is no other option when funders will not meet the full cost of service provision.

“Currently DHBs do not support community pharmacies passing on un-met costs to the patient. When providers such as Southern Cross do see the value in this, and understand the need for such charges to ensure pharmacy services are sustainable, it is hard to understand why DHB funders will still not support these surcharges.”

Pharmacy software Toniq and LOTS now have IT infrastructure in place to allow Southern Cross to utilise their Easy-claim system. This means Southern Cross members with eligible policies do not have to pay any upfront costs and Southern Cross will pay their members’ providers directly. Easy-claim is currently available in 607 pharmacies around New Zealand.

ENDS

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