Sir, The PBAC's reply to Professor Kamien (Aust Prescr 1995;18:41) explains the procedure for pharmacists' reimbursement for quantities less than the maximum listed in the Schedule of Pharmaceutical Benefits. However, it ignores the financial loss incurred in most cases. Of the 3 instances mentioned by Professor Kamien, the prescribing of 56 bismuth subcitrate tablets (or similar expensive or infrequently prescribed drugs) presents the main problem.
An original pack of 112 bismuth subcitrate tablets costs the pharmacist $22.20 and, using the wastage factor table, the amount payable for 56 tablets is $15.13 excluding dispensing fee. Most pharmacists' shelves are dotted with expensive unused drugs rapidly reaching their expiry date. Pharmacists are expected to subsidise these losses from the 10% markup on cost which the Pharmaceutical Benefits Scheme allows.
John Bryant
Pharmacist
Mosman, N.S.W.
Sir, I believe the PBAC response to Professor Kamien regarding the losses incurred by pharmacists dispensing less than maximum quantities on the PBS requires further elaboration.
While it is correct to state that a wastage factor of 12% applies to the pricing of half of a maximum quantity under the PBS, this still leaves the pharmacist in a loss situation and providing a subsidy on behalf of the PBS. Given that there is no compensation available for unused Schedule 4 products requiring a prescription, this more often than not is the reality. In the example of bismuth subcitrate, the application of 62% leaves the pharmacist $7.06 short of the wholesale cost of the 112 original pack. After adding the dispensing fee, the loss remains and becomes exactly $3.
Pharmacists agree with the necessity to prescribe only the quantity that the patient requires. However, there is no justification for them to lose financially when this commonly occurs. Broken quantity pricing arrangements should protect this situation, so that all health professionals are correctly remunerated when providing a service on behalf of the Government.
John Mullins
Pharmacy Guild of Australia (N.S.W. Branch)
Sydney, N.S.W.
PBAC response
Some pharmacists are concerned that dispensing less than the quantity in a commercial pack may leave them with unusable broken packs of medicines.
Prescribing of broken packs is infrequent because the sizes of manufacturers' packs are generally chosen to reflect the quantities needed for normal treatment regimens. If there are examples where the sizes of manufacturers' packs are frequently inappropriate, then this should be raised with the pharmacy organisations or the suppliers.
A situation where odd quantities may be required is where the patient is being tried or initiated on another treatment. Manufacturers identified this as one reason for the need to supply sample packs to prescribers.
In other cases, pharmacist remuneration arrangements provide a loading for broken packs. For dispensing under the Pharmaceutical Benefits Scheme, the loading is determined by an independent tribunal which takes account of the overall commercial risks associated with broken packs.