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ICPSA Variation Offer 2020

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ICPSA - Variation offer for contract-holders 

APAS funding increase

APAS fact sheets 2020

APAS payment estimation calculator

Generic version Letter of Offer

Local services funding

Immunisation funding

The 2020 National Annual Agreement Review of the Integrated Community Pharmacy Services Agreement (ICPSA) concluded in August 2020, with DHBs and community pharmacy provider representatives agreeing Variation 2 on the existing contract to enable contract-holders to receive increased funding from 1 October 2020.

ICPSA Core 'evergreen' contract [1mb] 

This contract does not expire, but is subject to review each year.

October 2018

Generic version: Variation 2 to ICPSA [217kb] 

Variation 2 will take effect on 1 October 2020.

August 2020

Variation 2 will be offered to all contract-holders from August, and will take effect on 1 October 2020.

Contract-holders who do not wish to sign Variation 2 can remain on their current contract, however they will not receive any additional funding agreed in this year’s National Annual Agreement Review.

More information about the variation choices is available below.

ICPSA - Variation offer for contract holders

ICPSA Variation 2


Total Additional Professional Advisory Services (APAS) funding forecast of $32.8 million

  • $8.4 million of APAS 2018-19 funding PLUS
  • $9.9 million of projected APAS 2019-20 funding PLUS
  • $14.5 million of new APAS funding for 2020-21.

Increase of influenza and MMR immunisation fees to $20.66 (excluding GST).

Other clauses have been amended, as set out in the Letter of Offer and FAQ.

ICPSA Variation 1A


Total Additional Professional Advisory ServIces (APAS) funding of $18.3 million

  • $8.4 million of APAS 2018-19 funding PLUS
  • $9.9 million of projected APAS 2019-20 funding 

Influenza and MMR immunisation fees remain at $19.96 (excluding GST)

MMR Services Schedule (Schedule 3A.6) expires on 31 December 2020. 

APAS funding increase

DHBs have agreed to a cost pressure recognition of 2.84 per cent, forecast to be around $14.5 million which will be applied to the Schedule 2 APAS payment from 1 October 2020. Additional APAS funding of around $300,000 will bring the total APAS forecast increase to $14.8 million. This is on top of $12.4 million expected underlying growth in 2020/21.

Community pharmacists provide professional advice every day that is often not linked to a dispensing, and the APAS payment acknowledges this ongoing contribution. The equity adjustor applied to the APAS funding recognises the needs of Māori and Pacific people, and Community Service Card and High Use Health Card holders.

Total APAS funding has been consolidated into a single pool of $32.8 million and will be calculated by market share. Calculation of the APAS payment has been simplified to give pharmacies greater certainty about how much they will be paid each month.

APAS Fact Sheets 2020

APAS Fact Sheet Variation 2, 2020 [327kb]

August 2020

The Additional Professional Advisory Service (APAS) Fact Sheet has been updated to reflect Variation 2, to take effect 1 October 2020.

APAS Fact Sheet 2019 [327kb]

August 2019

The previous Additional Professional Advisory Service (APAS) Fact Sheet from the 2019 Variations - for your information.


APAS Payment Estimation Calculator

APAS Payment Estimation Calculator [Excel spreadsheet 26kb]


The APAS calculator is provided so that community pharmacy service providers can estimate the APAS payment that they will receive each quarter.  Any amount given is an estimate only.

The actual APAS payment that each provider will receive will be determined in accordance with the relevant provisions in Schedule 2 of the Integrated Community Pharmacy Services Agreement.

The actual APAS payment received by a provider may differ from an estimated payment for a number of reasons, including changes in the provider's market share, changes in the provider's patient mix, or due to providers entering or exiting the market.  Neither TAS, nor any DHB, make any guarantee in relation to the calculator, and do not accept any responsibility or liability for any loss or damage that might arise (directly or indirectly) from use of the calculator or the information in it. 

Generic Version: ICPSA Variation 2 Letter of Offer

Generic version: ICPSA Variation 2 Letter of Offer [317kb] 

This is a generic version of the Letter of Offer for ICPSA Variation 2, taking effect from 1 October 2020. 

August 2020


ICPSA Variation 2 FAQs

FAQ: ICPSA Variation 2, October 2020 [171kb] 

Frequently asked questions about ICPSA Variation 2

August 2020


Local services funding

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

Immunisation funding increases

DHBs have increased funding for influenza and MMR vaccinations by 3.51 per cent to $20.66 (excluding GST) backdated to 1 July 2020, on top of the 2 per cent increase in March 2020. MMR vaccinations will be part of the core contract (Schedule 3A).

Last updated: 9/8/21