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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 Variations on the existing contract to enable contract-holders to receive increased funding from 1 October 2019.

ICPSA - Variations effective 1 October 2019 

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

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 

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. 

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

August 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

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: 18/8/20