ICPSA Variations Offer 2019

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 Variations on the existing contract to enable contract-holders to receive increased funding from 1 October 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 from 1 October 2019.  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 expired in the existing ICPSA contract on 30 September 2019, however DHBs renewed it for the 2019/20 year for all contract-holders who signed a contract Variation.  The 2 percent increase is on top of the 2018/19 APAS total pool of $8.4 million, meaning contract-holders who signed Variation 1A share in a total forecast APAS pool of more than $18 million.  Contract-holders who did not wish to sign Variation 1A can still access APAS funding of $8.4 million through Variation 1B.

All contract-holders signed Variation 1A in September 2019, apart from one who signed 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. 

Comparison of changes, FAQ, updated APAS Fact sheet