ICPSA Variations Offer 2019

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ICPSA-Variation choices for contract-holders 

APAS funding increase

Local services funding

Generic version Letter of Offer

ICPSA 1 October 2018 and Contract Variations 1A and 1B

Comparison of changes, FAQ, updated APAS fact sheet

The 2019 National Annual Agreement Review of the Integrated Community Pharmacy Services Agreement (ICPSA) concluded in August 2019, with DHBs and community pharmacy provider representatives agreeing a variation on the existing contract to enable contract-holders to receive increased funding from 1 October 2019.

ICPSA contract-holders are receiving in August 2019 individual Letters of Offer for ICPSA Variations effective from 1 October 2019.

If they wish to sign a Variation to access increased funding from 1 October 2019, they must notify the DHB by email that they intend to sign a Variation no later than 5pm Tuesday 17 September 2019, and return the signed Variation to their DHB as soon as possible.

ICPSA - Variation choices for contract-holders 

Contract-holders can sign

ICPSA Variation 1A 

Total Additional Professional Advisory ServIces (APAS) funding forecast of $18 million

  • 2 per cent increase applied to APAS 2019-20 funding (forecast total $9.6 million)  PLUS
  • $8.4 million of APAS 2018-19 funding
Clauses covering location, equity, and audit have been updated

OR Contract-holders can sign

ICPSA Variation 1B

Total APAS funding $8.4 million

  • $8.4 million of APAS 2018-19 funding continues
All other clauses identical to ICPSA 1 October 2018 

OR Contract-holders can sign neither variation and stay on

ICPSA 1 October 2018 

No APAS funding

  • In  ICPSA 1 October 2018 all APAS funding ceases on 30 September 2019.

APAS funding increase

DHBs agreed to a 2 percent increase to recognise cost pressures, forecast to be $9.6 million, on top of the 1.9 percent volume growth increase of $8.9 million expected in 2019-20. The 2 per cent increase  will be applied to the Schedule 2 Additional Professional Advisory Services (APAS) payment.  Community pharmacists provide professional advice every day that is often not linked to a dispensing, and the APAS payment acknowledges this ongoing contribution.

The APAS payment expires in the existing contract on 30 September 2019, however DHBs are renewing it for the 2019/20 year for all contract-holders who sign a contract variation.  The 2 percent increase will be on top of the 2018/19 APAS total pool of $8.4 million, meaning contract-holders who sign Variation 1A will share in a total forecast APAS pool of more than $18 million.  Contract-holders who do not wish to sign Variation 1A will still be able to access APAS funding of $8.4 million through Variation 1B.

Local services funding

DHBs will continue to fund $4.1 million for locally commissioned services annually.

Generic Version: ICPSA Variations Letter of Offer

This is a generic version of the Letter of Offer for ICPSA contract variations taking effect from 1 October 2019. All contract-holders will receive an individual letter of offer and contract variations in August 2019. This generic version was updated on 30 August 2019 to reflect that only Variation 1A will be sent to contract-holders. Variation 1B will be sent on request.

Generic version: ICPSA Variations Letter of Offer [317kb] 

August 2019


ICPSA  1 October 2018 and Contract Variations 1A and 1B 

ICPSA Variation 1A [171kb] 

August 2019

This is Variation 1A of ICPSA to take effect from 1 October 2019. It features some updated clauses and provides contract-holders with access to the 2 per cent funding increase, as well as the renewed APAS payment of $8.4 million from 1 October 2019.

ICPSA Variation 1B [ 54kb] 

August 2019

This is Variation 1B of ICPSA to take effect from 1 October 2019. The only difference between Variation 1B, and the contract effective from 1 October 2018,  is that the APAS payment of $8.4 million is renewed from 1 October 2019.

ICPSA 1 October 2018 [1Mb] 

August 2019

This is the ICPSA contract which is ‘ever-green’ – ie it does not terminate.  In this contract, the 2018/19 APAS payment terminates on 30 September 2019.


Comparison of changes, FAQ, updated APAS Fact sheet

ICPSA and Variation 1A: Clause comparison [172kb]  

August 2019

This document shows the wording of the updated clauses  in Variation 1A alongside the wording of the original clauses in ICPSA 1 October 2018.

FAQ: ICPSA Contract Variations 1 October 2019 [171kb] 

August 2019

An FAQ about the ICPSA Variation process

Updated APAS Fact Sheet [327kb]

August 2019

The Additional Professional Advisory Service Fact Sheet has been updated to reflect the contract Variations to take effect 1 October 2019, currently being offered to community pharmacy contract-holders.

Last updated: 30/8/19