Maddocks has acted as legal adviser to the Commonwealth Department of Health during the negotiation of the Seventh Community Pharmacy Agreement (7CPA), which was signed on 11 June 2020 by the Hon. Greg Hunt, Minister for Health, on behalf of the Commonwealth of Australia, the Pharmacy Guild of Australia and the Pharmaceutical Society of Australia.

This landmark agreement supports the implementation of a number of key Australian Government commitments, including access to Commonwealth subsidised medicines, medicine safety, support for aged care, support for pharmacy in regional, rural and remote areas and reforms to improve access to medicines for the Aboriginal and Torres Strait Islander community under the government’s 'Closing the Gap' initiatives.

In addition to these and other initiatives, the agreement sets the price that is paid to pharmacists for dispensing medicines under the Pharmaceutical Benefits Scheme, which is expected to be $16 billion in Commonwealth spending over the 5-year term of the agreement.

The 7CPA also provides for:

• $1.2 billion for professional pharmacy programs
• $1.15 billion for the Community Service Obligation and National Diabetes Services Scheme product distribution arrangements.

The negotiations between the Department of Health and key stakeholders, including the Pharmacy Guild of Australia, were held over a 12-month period, with Maddocks participating in many of the negotiation meetings.

The Maddocks team was led by partner Andrew Whiteside and included special counsel Paul Ellis, and lawyer Xinyu Zhang. This work continues Andrew’s long association with community pharmacy agreements, having also advised on the Sixth Community Pharmacy Agreement and the Community Service Obligation pharmaceutical wholesaler arrangements.

Maddocks Healthcare Sector Leader Lucille Scomazzon says, “Maddocks work on the 7CPA is another significant achievement for our Healthcare Sector team, showcasing the depth of our expertise in the pharmacy and pharmaceutical sectors. Congratulations Andrew and the team.”

Maddocks Commonwealth Government Sector Leader Simonetta Astolfi added, “The 7CPA is another example of the great work we are doing for Commonwealth Government clients and its signing is a proud achievement for the firm.”

Editor note:

Maddocks is a proudly independent Australian law firm that works closely with corporations, businesses and governments throughout Australia and internationally. We advise national and international clients across the education, government, healthcare, infrastructure and technology sectors, from our Canberra, Melbourne and Sydney offices. Our specialist expertise includes dispute resolution and litigation, employment and safety, financial services, franchising and insolvency.

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Jason Silverii
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