The Southern Cross Health Society is reimbursing any surcharges their members with eligible policies have incurred from a pharmacy.

Community pharmacies around New Zealand are currently in a position where five out of 10 medicines are dispensed at a net loss, and this continues to grow. A number of pharmacies are being forced to pass on unmet costs to patients where the medicine margin is insufficient to cover the full cost of getting that patient’s medicine into the pharmacy. Under the current funding model, this is the only choice for many pharmacies to remain viable.

Southern Cross has agreed to cover surcharges their members incur from pharmacies due to this issue. The Pharmacy Guild of New Zealand CEO, Lee Hohaia, says, “We are extremely appreciative of this show of support from Southern Cross. At this point in time support from the wider health sector is extremely valuable and demonstrates the value other health care providers see in community pharmacy services.

“We also appreciate Southern Cross alleviating this financial burden from their members. Community pharmacy does not want to pass on extra charges to patients, but for many pharmacies there is no other option when funders will not meet the full cost of service provision.

“Currently DHBs do not support community pharmacies passing on unmet costs to the patient. When providers such as Southern Cross do see the value in this, and understand the need for such charges to ensure pharmacy services are sustainable, it is hard to understand why DHB funders will still not support these surcharges.”