Integrated Community Pharmacy Services Agreement

There are just over 1000 community pharmacy providers throughout Aotearoa, and each provider has entered into a contract with their local District Health Board for the provision of pharmacy services.

The Integrated Community Pharmacy Services Agreement (ICPSA) came into effect on 1 October 2018. It replaces the previous contract, Community Pharmacy Services Agreement 2012 (CPSA 12). This section contains key information about the new contract.

Contract Structure

ICPSA is an evergreen contract, and includes a head agreement and three service schedules.

Head agreement
The head agreement (Parts A to E) covers background, service and quality requirements, general terms, payment and claiming terms, and definitions.

Schedule 1: Dispensing and professional advisory services

Dispensing and professional advisory services.

Schedule 2: Additional professional advisory services

DHBs want to recognise the clinical services pharmacists provide to patients that are not specifically linked to dispensing a medicine. This Schedule contains the Additional Professional Advisory Services payment. See the Payments section for more information.

Payments and procedures

Schedule 3: Population services

Schedule 3A – Nationally consistent services, which are:

• Opioid Substitution Treatment Services (3A.1)
• Aseptic Service (3A.2)
• Sterile Manufacturing Services (3A.3)
• Clozapine Services (3A.4)
• Influenza Immunisation Services (3A.5)

Schedule 3B - these are services for which there is a national service specification, but which DHBs may be able to locally commission following the change processes outlined in clauses B27 to B29 and are:

• Long Term Conditions Pharmacy Services (3B.1)
• Community Residential Care Pharmacy Services (3B.2)
• Age-Related Residential Care Pharmacy Services (3B.3)
• Special Foods Services (3B.4)
• Community Pharmacy Anticoagulation Monitoring Service (3B.5)
• Smoking Cessation Services (3B.6) (if relevant).

Schedule 3C - services specific to individual pharmacies.

Supporting documents to the contract

Data Specification
Email: BSSHelpdesk@moh.govt.nz
Contact: Your software vendor.

National Annual Agreement Review 

The Integrated Community Pharmacy Services Agreement provides that, before 1 October each year, there will be a national review of the nationally-consistent parts and service schedules of the Agreement (as well as any Service Schedules in Schedule 3B that the Participants agree to consider as part of the review). It must be complete by July the following year so any changes can be adopted on 1 October 2019, the anniversary of the contract.

What is the purpose of the review?

The function of the review is to consider the matters described in the Agreement, and to provide recommendations to the DHBs as required.

Who may participate in the Review?

District Health Boards, Ministry of Health, community pharmacy providers and/or their representatives.

What may be reviewed?

There will be a national review of the nationally-consistent parts and service schedules of the Agreement (as well as any Service Schedules in Schedule 3B that the Participants agree to consider as part of the review). It may also include a review of cost pressures and funding adjustments.

Terms of Reference

Here is a link to the National Annual Agreement Review Terms of Reference.

National Annual Agreement Review 2018-2019

All contract-holders were contacted in mid-November and given the opportunity to represent themselves, or be represented by a person or organisation other than the five existing sector representatives. 

Please send any queries to us at:

Email: pharmacy@tas.health.nz

Schedule 1 Review: Discovery Stage 

The Integrated Community Pharmacy Services Agreement (clause B.26) requires DHBs to undertake a review of  the services described in Schedule 1 of the Agreement, to determine whether, and if so how, the Dispensing Services and Professional Advisory Services described in Schedule 1 could be provided by different entities.

ICPSA Clause B26 

What is the Discovery Stage?

DHBs have initiated the first stage of the Review – the Discovery Stage. A project team is conducting qualitative interviews with a range of people including community pharmacists and pharmacy owners with a mix of business models, academics, wholesalers, technicians, technology providers, and system and process experts. These people are already involved in, or wish to develop, innovative models for medicine supply, patient advice, and other pharmacy-related patient services. 

In the Discovery Stage, the project team wants to understand current and future enablers and barriers for the development of a range of business and service models. 

What are the next steps?

The interviews will inform a report that demonstrates where and how innovation occurs now and could occur in the future, and identifies any barriers.  A draft report will be provided to the DHBs’ Pharmacy Services Expert Advisory Group (EAG) and the National Annual Agreement Review for comment.  Advice from the EAG and the National Annual Agreement Review will inform the report that goes to DHB General Managers Planning and Funding for consideration in the July quarter this year.

How will the community pharmacy sector be involved?

The  community pharmacy sector will be involved through the DHBs’ Pharmacy Services EAG, and the National Annual Agreement Review of the Integrated Community Pharmacy Services Agreement.

The Schedule 1 Review is on the DHBs’ Pharmacy Services EAG workplan, and the EAG will provide advice on the Review as it proceeds.  The EAG comprises representatives from the community pharmacy and health sectors, as well as consumers, the Ministry of Health, and PHARMAC.  The EAG will provide advice on the report arising from the Discovery Stage.

Advice on the draft report will also be sought from the National Annual Agreement Review of the Integrated Community Pharmacy Services Agreement. The five provider organisations participating in the National Annual Agreement Review are:

• The Pharmacy Guild
• Green Cross Health
• Nirvana Pharmacy Group
• Pharmacy Partners
• Countdown

Advice from the EAG and the National Annual Agreement Review will inform the report when it goes to DHB General Managers Planning & Funding for consideration in the July quarter.

Historic background to the contract

The Integrated Community Pharmacy Services Agreement (ICPSA) came into effect on 1 October 2018, and  replaced the previous contract, Community Pharmacy Services Agreement 2012 (CPSA 12).

ICPSA introduced in 2012

The Community Pharmacy Services Agreement was introduced in July 2012 initially as a three year contract between individual District Health Boards (DHB) and each individual pharmacy throughout New Zealand for the provision of pharmacy services. The CPSA 12 reflected a shift to a patient-centred pharmacy delivery model which encouraged integration between health professionals.

Extension agreed in 2015

In 2015 it was agreed that an extension was required to the Agreement and this was implemented on 1 July 2015 to run through to 30 June 2016 with an option to extend. Consequently CPSA 12 was implemented in stages and extended three times (to 30 June 2017, 30 June 2018 and 30 September 2018). The document below is a consolidated version of the CPSA. It reflects the changes and variations made to the CPSA over the various implementation stages.

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