Public and Private Hospital Wholesale Mark-ups for S85 Medicines

As part of the recent Budget, the Australian Government announced a measure to align the wholesale mark-up for PBS Section 85 medicines in public and private hospital pharmacies with the current wholesale mark-ups for community pharmacies.

From 1 October 2019 the PBS wholesale mark-ups for Section 85 medicines dispensed in both public and private hospitals will now be aligned with the community pharmacy mark-ups under the new measure.

There will no change to community pharmacy markups or pricing calculations.

The measure does not affect Section 100 medicines which will continue to be priced under the current arrangements. Nor will this program affect any other fees and mark-ups (such as dispensing fees, DD fees etc) for dispensing Section 85 medicines.

The measure does NOT introduce any new or additional dispensing fees for hospital pharmacies.

More information about this change can be found on the PBS website: http://www.pbs.gov.au/info/news/2019/07/changes-to-wholesale-mark-up-arrangements-for-pbs-section-85

Example - Under $1000

	Prior to 1 October 2019		As of 1 October 2019
Community Pharmacy	No change		No change
S94 Pharmacy	S94 AMX1=($4.96+3.33%) Mark-up (1.4%) Disp fee Gov rec Surcharge Patient Price	$5.13 +$0.07 +7.39 +1.25 +4.53 $18.37	S94 AMX1 = $4.96 Markup (1.4%) Disp fee Gov rec Surcharge Patient Price	$4.96 +$0.07 +$7.39 +$1.25 +4.53 $18.20

Example - Over $1000

	Prior to 1 October 2019		As of 1 October 2019
Community Pharmacy	No change		No change
S94 Pharmacy	S94 NEXA1 = ($5465.60-69.94)*(1+11.1%) Mark-up (1.4%) Disp fee Retail Patient Price	$5994.58 +$83.92 +$7.39 $6085.89 $40.30	S94 NEXA1 = $5465.60 Markup (1.4%) Disp fee Retail Patient Price	$4.96 +$83.92 +$7.39 $5549.51 $40.30

As part of this change we have hidden the S94 wholesale price display in Lists>Drugs and [F7].