National Health Act 1953 - Special Arrangements under subsection 100(1)(b)(i) - Multiple Hospitals Paperless Claiming Trial (No. PB 16 of 2009)

Administered by Department of Health, Disability and Ageing

Legislation au F2009L00305 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

NATIONAL HEALTH ACT 1953

 

INSTRUMENT PB 16 of 2009 – SPECIAL ARRANGEMENTS MADE UNDER SECTION 100 (SPECIAL ARRANGEMENTS:  MULTIPLE HOSPITAL PAPERLESS CLAIMING TRIAL)

 

 

Authority

Part VII of the National Health Act 1953 (the Act) sets out the legislative basis for the Pharmaceutical Benefits Scheme (PBS). The Commonwealth provides reliable, timely, and affordable access to a wide range of medicines for all Australians through the PBS.

 

Subsection 100(1) of the Act provides that the Minister may make special arrangements for providing that an adequate supply of special pharmaceutical products will be available to persons:

(a) who are living in isolated areas; or

(b) who are receiving medical treatment in such circumstances that pharmaceutical benefits:

(i) cannot be conveniently or efficiently supplied in accordance with Part VII  of    the Act; or

(ii) are inadequate for that medical treatment.

 

Subsection 100(2) of the Act provides that the Minister may vary or revoke a special arrangement made under subsection 100(1).

 

Purpose and operation

This arrangement is made under subsection 100(1)(b)(i) of the Act (the Arrangement).

 

The purpose of the Arrangement, PB 16 of 2009, is to amend the relevant requirements of the Act, the Regulations and other relevant legislative instruments made under the Act to allow pharmacy providers (the Approved Suppliers), at various private hospitals located within Victoria and specified at Schedule 1 of the Arrangement, to use a paperless claiming procedure to claim payment for each pharmaceutical benefit supplied.

 

Context

The Department expects that the results of the Multiple Hospital Paperless Claiming Trial (the Trial) will contribute to the development of national eHealth guidelines and policy, and more specifically ePrescribing strategies. The outcomes of the trial will inform the development of national ePrescribing standards and guidelines, which will assist in the facilitation of a national ePrescribing solution.

 

 

 

 

Application

The Trial allows prescribers to use electronic medication charts, instead of paper based prescriptions. The medication charts are printed and signed by the prescribers involved in the trial.

 

The Approved Supplier supplies the pharmaceutical benefit using a paper copy of the medication chart and then submits a claim to the Medicare Australia CEO without a paper copy of the medication chart.

 

The Approved Supplier must then create an electronic record of the medication chart.

Copies of all electronic pharmacy records are stored by each Approved Supplier for not less than one year after the date the pharmaceutical benefit is supplied to allow the Medicare Australia CEO to audit the claim if required.

 

Details

This arrangement provides retrospective approval to1 January 2008.  The original arrangement for this trial, signed on 15 July 1998, ceased to have effect on this date, as the original arrangement was not registered on the FRLI.  The original Arrangement was not registered on the FRLI as the program area was unaware of this requirement.  However, steps have been taken to ensure that all future instruments will be registered in advance of their commencement.

 

The Arrangement will operate retrospectively from its commencement date                 (that is 1 January 2008) to the date it is registered on the Federal Register of Legislative Instruments.

 

The Arrangement is beneficial in nature. Its purpose is to ensure that pharmaceutical benefits can continue to be prescribed and supplied to patients and payment can be claimed using the alternative procedures set out under the Trial. Even though the Arrangement will be retrospective, it should not infringe subsection 12(2) of Legislative Instruments Act 2003 (that is it should not adversely affect the rights of anyone except the Commonwealth)

 

 The details of the Arrangements are set out in the Attachment.

 

Consultation:

The Department of Health and Ageing has consulted with Medicare Australia and each of the participating hospitals during the development of the Trial. As a result of these consultations all parties are satisfied with the outcomes, terms and conditions of the Trial.

 

 

 

 

 

 

 

ATTACHMENT

 

Details of the Arrangement made under Section 100 of the National Health Act 1953

 

Paragraph 1 provides that the Arrangement commenced on 1 January 2008.

 

Paragraph 2  provides that a word or phrase used in these Arrangements will be taken to have the same meaning as in the National Health Act 1953 (the Act), the National Health (Pharmaceutical Benefits) Regulations 1960 (the Regulations) or a declaration, determination or other instrument made under Part VII of the Act or under the Regulations. Paragraph 2 also defines a range of terms used in the Arrangement.

 

Paragraph 3 limits the scope of the Arrangement so that it only applies to the Trial being conducted at the hospitals specified in the Schedule to the Arrangement. 

 

Paragraph 4 provides that unless specified in the Arrangement, the provisions of the Act, the Regulations, declarations, determinations and other instruments made under Part VII of the Act shall apply to the prescribing of pharmaceutical  benefits for the treatment of the in-patients of the approved hospital, to the supply of those pharmaceutical benefits by the approved pharmacists to the in-patients of the hospital, and to claims for payment by the approved pharmacists for the supply of those pharmaceutical benefits.

 

Paragraph 5 provides that where a medical practitioner prescribes a pharmaceutical benefit for an in-patient being treated at the participating hospitals specified in The Schedule of the Arrangement using a medication chart (and that patient is named on the chart) then that medication chart will be taken to be a duly written prescription within the meaning of Regulation 19 of the Regulations.

 

This paragraph also sets out the conditions which are to be met in order for the medication chart to be taken as a duly written prescription within the meaning of Regulation 19 of the Regulations. 

 

Paragraph 6 provides that where a dental practitioner prescribes a pharmaceutical benefit for an in-patient being treated at the hospital using a medication chart (and that patient is named on the chart) then that medication chart, will be taken to be a duly written prescription within the meaning of Regulation 19 of the Regulations.

 

This paragraph also sets out the same conditions as set out in paragraph 5, but it leaves out paragraphs (e), (f), (g) and (h) as these provisions do not apply to dental practitioners.

 

Paragraph 7 provides that where an authorised optometrist prescribes a pharmaceutical benefit for an in-patient being treated at the participating hospitals specified in The Schedule of the Arrangement using a medication chart (and that patient is named on the chart) then that medication chart, will be taken to be a duly written prescription within the meaning of Regulation 19 of the Regulations.

 

This paragraph also sets out the conditions which need to be met in order for the medication chart to be taken as a duly written prescription within the meaning of Regulation 19 of the Regulations. The conditions set out in this paragraph are identical to those set out in paragraph 5.

 

Paragraph 8 varies Regulation 26A and Regulation 31 of the Regulations.

 

Regulation 26A deals with deferred supply and paragraph 8 allows the approved supplier to treat the medication chart as if it were an original prescription and prevents the approved supplier from deferring the supply of one or more of the benefits prescribed.

 

Regulation 31 deals with the receipt of pharmaceutical benefits. The Arrangement allows the approved supplier or a person authorised by the approved supplier to certify on the medication chart that the pharmaceutical benefit has been supplied, the date on which it was supplied and sign his or her name.

 

Paragraph 9 provides that the approved supplier must create an electronic record for each pharmaceutical benefit supplied to the in-patient in accordance with the medication chart.   The approved supplier must also keep the electronic record for not less that one year after the day on which the pharmaceutical benefit is supplied.

 

Paragraph 10 provides that the information provided in the electronic record must set out all the information required to be included by the Approved Supplier when submitting a claim in accordance with in  Part 4 of the Schedule to the Rules in force under subsection 99AAA(8) of the Act.

 

Paragraph 11 provides that subject to paragraph 12, an Approved Supplier may submit a claim for payment without including the medication chart for each pharmaceutical benefit which has been supplied.

 

Paragraph 12 provides that the Approved Supplier must provide the Medicare Australia CEO with a copy of all or any electronic pharmacy record, if this is required.  

 

Paragraph 13 provides that the Approved Supplier must provide the Medicare Australia CEO with a copy of all or any medication charts, if this is required.

 

Paragraph 14 provides that where information is provided by the Approved Supplier to the Secretary by electronic means it must comply with the requirements of paragraph 5 of, and the Schedule to, the Rules in force under subsection 99AAA(8) of the Act.

 

The Schedule

 

The Schedule to the arrangements identifies various private hospitals that are approved to participate in the Trial and their Approved Suppliers for the purposes of the Trial.

 

Overview

The National Health Act 1953 was enacted to provide for the administration of the Pharmaceutical Benefits Scheme (PBS) and ensure the availability of pharmaceutical products to Australians, especially those in isolated areas or undergoing medical treatments where conventional PBS provisions are inadequate. The Act enables the Minister for Health to make special arrangements to address these needs. The Special Arrangements made under section 100(1)(b)(i) of the Act, specifically PB 16 of 2009, aim to facilitate a Multiple Hospital Paperless Claiming Trial in Victoria, allowing pharmacy providers at designated private hospitals to use an electronic claiming process for pharmaceutical benefits, thereby enhancing efficiency and contributing to national eHealth and ePrescribing strategies. This initiative is overseen by the Commonwealth Government, and its policy objective is to improve the supply and administration of pharmaceutical benefits while supporting the development of national eHealth guidelines and ePrescribing standards.

Scope and Application

The instrument PB 16 of 2009, made under Section 100 of the National Health Act 1953, pertains specifically to a trial involving the use of paperless claiming procedures for pharmaceutical benefits in certain private hospitals located within Victoria. This special arrangement is designed to facilitate the Multiple Hospital Paperless Claiming Trial, where prescribers use electronic medication charts instead of paper-based prescriptions, aiming to contribute to the development of national eHealth guidelines and ePrescribing strategies. The Arrangement allows pharmacy providers, referred to as Approved Suppliers, to use paperless claiming procedures for pharmaceuticals supplied to inpatients at hospitals specified in Schedule 1 of the Arrangement. The Arrangement applies to the trial period, commencing retrospectively from 1 January 2008 to the date of its registration on the Federal Register of Legislative Instruments. The Arrangement modifies the requirements of the Act, Regulations, and other relevant instruments to accommodate the use of electronic medication charts as duly written prescriptions and to allow for the electronic submission of claims to Medicare Australia. Furthermore, it mandates that Approved Suppliers create and retain electronic records of all pharmaceutical benefits supplied for at least one year to enable potential audits by Medicare Australia. The Arrangement also clarifies that, unless specified otherwise, the general provisions of the Act and Regulations continue to apply to the prescribing, supplying, and claiming of pharmaceutical benefits in these hospitals.

Key Provisions

The primary sections of the instrument PB 16 of 2009 (the Arrangement) under the National Health Act 1953, provide for a trial of paperless claiming procedures for pharmaceutical benefits at specified private hospitals in Victoria. The Arrangement modifies the requirements of the Act, the Regulations, and other relevant legislative instruments to allow pharmacy providers at these hospitals to use a paperless claiming procedure for each pharmaceutical benefit supplied (Paragraph 1). The Arrangement applies retrospectively from 1 January 2008, and its purpose is to ensure that pharmaceutical benefits can be prescribed and supplied to patients, and payment can be claimed using the alternative procedures outlined in the Trial (Paragraph 4). The Arrangement specifies that the medication chart used by medical practitioners, dental practitioners, and authorised optometrists will be considered a duly written prescription if certain conditions are met (Paragraphs 5, 6, 7). It also allows the approved supplier to treat the medication chart as if it were an original prescription, preventing the deferral of supply (Paragraph 8). The approved supplier must create an electronic record for each pharmaceutical benefit supplied and retain it for at least one year (Paragraphs 9, 10). The approved supplier may submit a claim for payment without including the medication chart, but must provide a copy if required (Paragraphs 11, 12, 13). Any information provided electronically must comply with certain requirements (Paragraph 14). The Arrangement imposes several obligations on the parties involved. Approved suppliers must ensure that the medication charts used meet the criteria for being considered a duly written prescription (Paragraphs 5, 6, 7). They must also create an electronic record for each pharmaceutical benefit supplied, detailing all necessary information for the claim, and retain these records for at least one year (Paragraphs 9, 10). Approved suppliers may submit claims for payment without the medication chart, but must provide a copy of the electronic record or medication chart if requested by the Medicare Australia CEO (Paragraphs 11, 12, 13). Any electronic information provided must comply with specified requirements (Paragraph 14). The approved supplier must also ensure that the medication chart is treated as an original prescription, preventing the deferral of supply (Paragraph 8). Breach of the requirements set out in the Arrangement may lead to various consequences. While the document does not explicitly state penalties for non-compliance, failure to meet the obligations could result in the inability to claim payment for pharmaceutical benefits supplied or potential audits by the Medicare Australia CEO. The approved supplier must provide the necessary documentation and electronic records to comply with the Arrangement, and failure to do so could lead to complications in the claiming process. Additionally, the Arrangement specifies that it should not adversely affect the rights of anyone except the Commonwealth, which suggests that any adverse effects on the rights of individuals or entities would be limited to the Commonwealth’s regulatory actions (Paragraph 4).

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