Plenary 1
Conference opening
The conference began with a ‘welcome to country’ ceremony from Mr Michael West, a cultural representative of the Metropolitan Local Aboriginal Land Council who are the traditional custodians of the land, air, water and culture within their boundaries.
Dr Suzanne Hill, the Chair of the Australian Pharmaceutical Benefits Advisory Committee, formally opened the conference, speaking on behalf of the Australian Minister for Health, the Hon Tanya Plibersek.
Dr Henk Bekedam from the Western Pacific Regional Office of the World Health Organization (WHO) welcomed conference delegates on behalf of the WHO.
Professor Andrew McLachlan, the Chair of the Organising Committee for the conference, welcomed delegates on behalf of the Australian organisers
Opening address
The Hon Tanya Plibersek MP
Australian Minister for Health
Speech delivered by
Dr Suzanne Hill
Chair
Pharmaceutical Benefits Advisory Committee
I would like to begin by acknowledging the traditional custodians of the land on which we meet, and pay my respects to their elders, both past and present.
It is a great pleasure to be with you today on behalf of the Australian Minister for Health, Tanya Plibersek.
Australia is pleased to again host an international conference on national medicines policies – an opportunity for constructive sharing of knowledge, skills and experiences on this vital aspect of health care.
I am delighted to see so many countries from across the South East Asia and Western Pacific regions represented here today, along with visitors from countries further afield including the United States, the United Kingdom and Europe.
Australia led the way with our National Medicines Policy. Established in December 1999, it continues to evolve to meet the changing needs and circumstances of government, consumers, health professionals and industry.
Of course there are initiatives in other countries which will be of great interest to Australians and could help to make a good system even better – which is what the exchange at this conference is all about.
Similarly the Australian approach can be of interest even though it may not be directly transferable to some countries.
Different countries in our region are at different stages in their development and implementation of health system and medicines policies.
They will need to ensure their own medicines policies are developed to best serve their people and their health systems.
We are all here to learn.
In this afternoon’s plenary session, Professor Lloyd Sansom will provide a more detailed account of Australia’s experience in implementing our National Medicines Policy.
For now, I would like to highlight the partnership approach which has underpinned that implementation.
The policy framework is based on partnerships between:
- governments (Commonwealth, States and Territories)
- health educators
- health practitioners and other healthcare providers
- the medicines industry
- patients and their carers.
All of these partners work together to promote the four central objectives of the policy.
These are:
- timely access to medicines that Australians need at a cost individuals and the community can afford
- ensuring that all medicines meet appropriate standards of quality, safety and efficacy
- quality use of medicines by consumers and health professionals
- maintaining a responsible and viable medicines industry.
First, timely access to affordable medicines.
The Pharmaceutical Benefits Scheme (PBS) is the primary means through which the medicines policy is implemented to ensure reliable, timely and affordable access to a wide range of medicines for all Australians.
The inclusion of medicines on the PBS is done on advice of an independent statutory authority, the Pharmaceutical Benefits Advisory Committee. The Committee considers not only the clinical effectiveness of a medicine but also its cost-effectiveness before recommending it to Government. It is this process that has helped Australia achieve highly competitive prices for new and innovative medicines.
The Government currently subsidises over 4,000 medicines through the PBS, making it one of the most accessible and affordable medicine subsidy schemes in the world.
Some of the subsidies provided by the PBS – on rare and expensive medicines – are very large.
The overall cost of the PBS represents a large portion of the health budget. In 2005–06 the PBS represented 12.8% of all Commonwealth Health expenditure. In 2010–11 that percentage had grown to 14%.
In fact, the PBS is expected to cost the Australian Government around $9.4 billion in 2011–12, which is an increase of 6.1% on 2010–11.
This investment is a direct reflection of the commitment the Australian Government has to the PBS because, just as it has done since 1948, it provides all Australians with affordable access to the medicines they need. And in combination with providing funding and support to around 5,000 pharmacies it also ensures these medicines can be accessed in a timely fashion, wherever in Australia you are.
Ensuring the ongoing sustainability of this system is of the utmost importance to the Government. This is why consecutive governments have introduced various reforms to ensure the correct balance between taxpayer-funded PBS subsidies, contributions from consumers and an environment that encourages industry to bring new medicines to Australia.
I am sure that you will be hearing more about the PBS and the approvals process during the course of the conference.
The second priority of the National Medicines Policy is that medicines meet appropriate standards of quality, safety and efficacy.
One of the major mechanisms for this is the Therapeutic Goods Administration (TGA). The TGA is responsible for ensuring that therapeutic goods available for sale and supply in Australia are safe and fit for their intended purpose.
Before a prescription medicine can be marketed in Australia it must be included in the Australian Register of Therapeutic Goods. In order to register a new medicine in Australia, a sponsor must submit an application together with supporting data to the TGA. The TGA evaluates the data to establish the quality, safety and effectiveness of the product when used as intended.
The TGA also usually seeks advice from two independent, expert advisory committees, before deciding to approve or reject a new product.
The third objective of the medicines policy is quality use of medicines.
It means –
- selecting management options wisely
- choosing suitable medicines, if medicine is needed
- using those medicines safely and effectively.
The National Prescribing Service (NPS) is the Australian Government’s implementation body for quality use of medicines under the medicines policy.
The NPS provides independent advice to prescribers, pharmacists and consumers to support decisions about medicines, and raise awareness about the quality use of medicines.
The work of the NPS covers all prescription, non-prescription and complementary medicines and many of its programs are targeted directly towards areas of specified need.
One of these is antibiotic resistance – a key challenge currently facing Australia and many of the countries represented here today, and the focus of Workshop 6.
Last February, the NPS launched a five-year program to address antibiotic resistance within the Australian community, initially targeting health professionals, with a consumer component launched in April 2012.
A new government program to support quality use of medicines involves monitoring the use of medicines after they have been listed on the PBS. Postmarket monitoring of the way medicines are used in clinical practice will improve medication safety, evidence development, quality use, effectiveness and cost-effectiveness.
This conference is also looking at some postmarket monitoring of medicines. In particular those used in the management of pain. This will be another area where the discussions at this conference offer a valuable learning opportunity for all.
Objective four of the National Medicines Policy is maintaining a responsible and viable medicines industry.
The Government and the peak body representing the majority of suppliers to the PBS, signed a four-year Memorandum of Understanding (MOU) – to promote the efficiency and sustainability of the PBS, and support a viable and responsible medicines industry in Australia.
This MOU provides for a period of stable pricing policy and improved listing timetables for all suppliers, in exchange for more competitive prices for generic medicines on the PBS. This agreement is delivering over $1.9 billion in savings to the PBS over five years.
In the past two years, the Government has also introduced measures to make it easier for companies to list new and innovative medicines on the PBS and new tax incentives to support research and development. This is coupled with its fifth agreement with Australia’s community pharmacies which not only ensures that medicines are available when they are needed, but has also recently contributed over $1 billion in savings over five years to support the sustainability of these services.
In all of these ways, partnerships are continuing to help the Australian Government to deliver medicines to Australians who need them.
There will be a further opportunity for partnership with consumers from 1 July 2012 when the Personally Controlled Electronic Health Record becomes available.
This e-health innovation has the potential to improve the efficiency and safety of health care, including use of medicines, by reducing transcription errors and duplication.
Medicines are essential to the health of any person and any nation. Medicines policy is of great importance, which is why the Australian Government has supported this conference through the NPS, the Department of Health and Ageing and AusAID.
It is another example of a valuable partnership. The Government thanks the NPS, the University of Newcastle and the World Health Organization for their hard work in bringing this conference to fruition.
I have great pleasure in declaring the conference open.
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