What is "pharmac"

The Pharmaceutical Management Agency, better known as Pharmac, is a New Zealand Crown entity that decides, on behalf of District Health Boards, which medicines and pharmaceutical products are subsidised for use in the community and public hospitals.

Pharmac was created in 1993 as a response to the ever-increasing costs of pharmaceuticals. The agency's primary aim is to ensure that New Zealanders get the best possible health outcomes as is possible from pharmaceutical treatment with the limited amount of Government funding available. In 2013/14, Pharmac has a subsidy budget of approximately $795 million, which was used to subsidise 43.1 million prescriptions issued to 3.5 million New Zealanders.

While initially responsible for community medicines only, Pharmac's role has been expanded to include all medicines used in DHB hospitals, and in preparation for the national management of medical devices. On 1 July 2012, the management of the national immunisation schedule, and assessment of new vaccines, transferred to Pharmac from the Ministry of Health.

Pharmac's current governing legislation is the New Zealand Public Health and Disability Act 2000, specifically sections 46 to 53. As a Crown entity, the agency is responsible to the Minister of Health via its Board of Directors.