Modelling options for the public funding of hospital medicines in Australia

19 Apr 2010

The National Health and Hospital Reform Commission (NHHRC) was charged with developing a long term reform plan for the Australian health care system. One area where the funding and regulation is complex and which gives rise to a number of medical and financial problems and concerns is hospital pharmacy.

Despite various proposals for change in the public funding of hospital medicines, this has attracted little attention in the reform agenda. This Report:

  • reviews hospital pharmacy in Australia and the current system for the public funding of hospital medicines in Australia;
  • identifies the key issues and problems that exist with the current funding and bureaucratic arrangements;
  • develops a system dynamics model to estimate the clinical, economic and organisational consequences of proposals for reform; and
  • identifies possible options for reform and evaluate the likely impact of a select few within the policy context of NHHRC deliberations and recommendations.


Authors:  Laurie Brown, Alicia Payne, Binod Nepal, Cathy Gong and Gabrielle Cooper

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