LTC Last Dispensing Ratio Calculation

August 1st 2013 Update

Your dispensing ratio was revised on 1st March 2013, as part of CPSA Stage 2. As of 1st August 2013, your dispensing ratio will revert back to the value prior to the revision applied on 1st March. This change relates to the introduction of the interim Core Service Fee, which was left out of the Stage 2 implementation.

What is the Dispensing Ratio?

With the new PSA, repeat prescriptions (apart from special services such as ARRC, Methadone, CDBs, ECP) will not be paid the same way as they are now.

Instead, most prescription items will be paid a handling fee ($1, to date) and the payment for original prescriptions will be factored up by a ‘dispensing ratio’, as a management payment for all repeats.

NZ wide, and excluding methadone, the ‘dispensing ratio’ is 1.6; that is, the total number of dispensings equals 1.6 multiplied by the total number of original (new) prescription items.

If your pharmacy has a higher number, then it is likely that you have a high number of rest-home beds or other ‘close control’ patients

To get your dispensing ratio

Use the ‘Dispensary Summary’ report for a period of the calendar year 2011: 01/01/11 to 31/12/11.

Using the example shown: :
Total dispensings is the ‘Rx total’ less ‘Rx NSS’ and less ‘Rx Co-pay NSS’ (=51837 in this example)
Total New Rxs is the ‘New’ less ‘Rx NSS’ and less ‘Rx Co-pay NSS’ (= 25011 in this example). The dispensing ratio (in this example) is 2.07.

Divide ‘Rx Total’ by ‘New’ to get your dispensary ratio (in this example it is 1.5944)

NOTE: if your pharmacy dispenses significant methadone, then use the ‘Prescription Details’ report to get the number of methadone prescriptions for the year.

You will have to run the ‘Prescription Details’ report for EACH methadone medicine TWICE; once for ‘Include new Rxs’ only and then again for ‘Include new Rxs’ AND ‘Include repeats’ [the total number].

Subtract these values from the relevant dispensary summary totals before doing the dispensary ratio calculation.

This information is a guide only; Toniq Ltd accepts no liability for the consequences of using this information or other similar assistance.