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Australian Health Review Australian Health Review Society
Journal of the Australian Healthcare & Hospitals Association
RESEARCH ARTICLE

Navigating the Pharmaceutical Benefits Scheme: federal versus state government funding for high-cost medicines – a problem for public hospitals

Jeanie Misko A * , Barry Jenkins A and Matt Rawlins https://orcid.org/0000-0002-6525-1084 A
+ Author Affiliations
- Author Affiliations

A Pharmacy Department, Fiona Stanley Hospital, Murdoch, WA, Australia.

* Correspondence to: jeanie.misko@health.wa.gov.au

Australian Health Review 46(3) 316-318 https://doi.org/10.1071/AH22002
Submitted: 6 January 2022  Accepted: 15 March 2022   Published: 12 May 2022

© 2022 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of AHHA.

Abstract

The funding of medication supply in Australian public hospitals is divided between the federal government’s Pharmaceutical Benefits Scheme (PBS) and thestate or territory government who pay for the remaining medications not covered under the PBS. For some high-cost medications, such as the monoclonal antibody blinatumomab, the current criteria for PBS funding in public hospitals are challenging. The strict requirement for inpatient admission, due to the risk of potentially serious adverse effects, alongside a lack of PBS reimbursement, while a hospital inpatient, may result in the state bearing the cost. A retrospective review of five patients receiving blinatumomab at our hospital found that, on average, patients remained inpatients for longer than that stipulated to meet PBS funding criteria, predominantly due to adverse effects associated with the medication. This resulted in the state government paying for the medication in full. The upcoming National Medicines Policy review should address the increasing complexity of new medications and their access and funding.

Keywords: blinatumomab, funding, hospitals, length of stay, medication access, medication costs, National Medicines Policy, Pharmaceutical Benefits Scheme.


References

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[6]  Australian Government Department of Health. Blinatumomab (Pharmaceutical Benefits Scheme). Canberra: Australian Government; 2021. Available at https://www.pbs.gov.au/medicine/item/11115B-11116C-11117D-11118E-11119F-11120G-11799B-11814T-11850Q-11867N [cited 10 December 2021]

[7]  Australian Healthcare Associates. Department of Health PBS pharmaceuticals in hospitals review: final report. Australian Healthcare Associates; 2017. Available at https://www.pbs.gov.au/reviews/pbs-pharmaceuticals-in-hospitals-review-files/PBS-Pharmaceuticals-in-Hospitals-Review.pdf

[8]  Pharmaceutical Benefits Advisory Committee. Public summary document: blinatumomab. Canberra: Australian Government; 2016. Available at https://www.pbs.gov.au/industry/listing/elements/pbac-meetings/psd/2016-07/files/blinatumomab-psd-july-2016.pdf [cited 25 May 2021]