National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 1 of 2021

Administered by Department of Health, Disability and Ageing

Legislation au F2021L00126 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

National Health Act 1953

 

National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 1 of 2021

 

 

 

Authority

 

This instrument is made under section 100(2) of the National Health Act 1953 (the Act).

 

Subsection 100(1) of the Act enables the Minister to make special arrangements for the supply of pharmaceutical benefits. Subsection 100(2) of the Act provides that the Minister may vary or revoke a special arrangement made under subsection 100(1).

 

Subsection 100(3) of the Act provides that Part VII of the Act, and instruments made for the purposes of Part VII of the Act, have effect subject to a special arrangement made under subsection 100(1). 

 

Purpose

 

The National Health (Electronic National Residential Medication Chart Trial) Special Arrangement 2018 (the Principal Instrument) allows three electronic medication management software vendors to trial their electronic medication order chart systems for the purposes of the Pharmaceutical Benefits Scheme (PBS) within a number of approved residential care services (as identified in the Schedule to the Principal Instrument). These systems provide a fully electronic version of the paper based residential medication chart currently available in all Australian approved residential care services.

 

The trial allows approved prescribers (usually general practitioners) within approved trial facilities, to prescribe pharmaceutical benefits directly from the electronic medication order chart system without developing a second paper-based prescription (often referred to as a medication order). Once rendered and electronically authenticated, these medication orders are sent directly to the approved supplier’s dispensing software (or made available by electronic means) for dispensing. Once dispensed, the pharmaceutical item is sent to the approved residential care service for administration to the patient, and a claim for payment is sent electronically to the Chief Executive Medicare by the approved supplier.

 

The purpose of the National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 1 of 2021 (the Amending Instrument) is to amend the Schedule to this Special Arrangement to allow three additional electronic medication management software vendors (DigiMed, Sigma/MPS and Compact) and an additional 155 residential aged care facilities to participate in the trial.

These additional software vendors and residential aged care services will provide a greater capacity for Residential Aged Care Facilities (RACFs) to utilise electronic prescribing during COVID-19. The extension of the trial to the new software vendors will increase the competition within the industry and provide additional time for all software vendors, to test and troubleshoot their products prior to the broader roll out, ensuring a safe transition to electronic prescribing for RACFs. The vendors are aware that this trial is an interim arrangement, and that they will need to work towards electronic prescribing conformance by 30 June 2021.

The Department and the Australian Digital Health Agency have assessed each software vendor’s proposal and viewed a software demonstration of each product to ensure they adequately support patient safety, privacy and security, as well as the requirements for the NRMC. The three software products have all met or exceeded these requirements, and both agencies are supportive of the extension of the eNRMC Trial to these vendors.

 

A provision by provision description of the Amending Instrument is contained in Attachment 1.

 

Consultation

The Department has consulted with the participating software vendors, relevant state and territory governments, Services Australia, the Australian Digital Health Agency and the Australian Commission on Safety and Quality in Health Care regarding this amendment. Identified RACFs (and residential aged care providers as appropriate) and pharmacies, are also aware of the amendments to the legislation which enable their participation in the trial, and thoroughly understand the conditions surrounding their participation. Prior to commencing the trial, the Department also enters into a Deed of Agreement with each software vendor, RACF and pharmacy involved. These documents are detailed agreements between the parties, which clearly stipulate the obligations and expectations of all participants (including the Department) to support the trial.

Commencement

 

The Amending Instrument commences the day after registration.

 

The Amending Instrument is a legislative instrument for the purposes of the Legislation Act 2003.

 


ATTACHMENT 1

Provision by provision description of the National Health (Electronic National Residential Medication Chart Trial) Amendment (approved Residential Care Services) Special Arrangement 1 of 2021

 

Section 1 Name

This section provides for the Amending Instrument to be referred to as the National Health (Electronic National Residential Medication Chart Trial) Amendment (approved Residential Care Services) Special Arrangement 1 of 2021.

 

Section 2 Commencement

This section specifies that the legislation will come into effect from the day after the instrument is registered.


Section 3 Authority

This section provides that the Special Arrangement is made under section 100(2) of the National Health Act 1953.


Section 4 Schedules

This section provides for the amendments being made to the Schedule to the original instrument, adding additional sites to the Special Arrangement, enabling them to participate in the National Health Electronic National Residential Medication Chart trial. 

 

The Schedule

The Schedule specifies the name, address and approval number of the residential care services participating in this Special Arrangement; the name, address and approval number of the approved supplier associated with each residential care service participating in this Special Arrangement; and the electronic medication management system software vendor associated with each residential care service.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overview

The National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 1 of 2021, made under section 100(2) of the National Health Act 1953, was enacted to extend the trial of electronic medication management systems in residential aged care facilities. This amendment, which came into effect the day after its registration, allows three additional software vendors and 155 residential aged care facilities to participate in the trial, thereby enhancing the capacity for electronic prescribing during the COVID-19 pandemic. The policy objective is to ensure a safe and efficient transition to electronic prescribing by increasing competition, allowing for more comprehensive testing, and ensuring that the participating software vendors meet the necessary standards for patient safety, privacy, and security. The Australian Government, through the Department of Health and the Australian Digital Health Agency, consulted with relevant stakeholders, including state and territory governments, health services, and industry bodies, to facilitate the amendment and support its implementation.

Scope and Application

The National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 1 of 2021 amends the National Health Act 1953 to extend the Electronic National Residential Medication Chart trial to additional residential aged care facilities and electronic medication management software vendors. This amendment is made under section 100(2) of the Act, which allows the Minister to make special arrangements for the supply of pharmaceutical benefits. The amendment extends the trial to an additional 155 residential aged care facilities and three software vendors, namely DigiMed, Sigma/MPS, and Compact, to increase capacity and competition during the COVID-19 pandemic. The amendment also ensures these additional vendors meet the patient safety, privacy, and security requirements set by the Department and the Australian Digital Health Agency. This special arrangement applies to the approved residential aged care services and electronic medication management software vendors listed in the amended schedule of the Act, allowing them to participate in the trial of electronic medication order chart systems for the purposes of the Pharmaceutical Benefits Scheme. The extension of the trial aims to provide a safe transition to electronic prescribing for residential aged care facilities, with a target conformance date of 30 June 2021. The amendment comes into effect from the day after the instrument is registered.

Key Provisions

The National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 1 of 2021 (section 1) amends the National Health (Electronic National Residential Medication Chart Trial) Special Arrangement 2018, permitting additional residential care services and electronic medication management software vendors to participate in a trial for electronic medication order charts. This trial allows approved prescribers within certain facilities to electronically prescribe pharmaceutical benefits, streamlining the medication process and aiming for a safer transition to electronic prescribing for Residential Aged Care Facilities (RACFs) (section 4). The amendment is effective from the day after it is registered (section 2) and is made under section 100(2) of the National Health Act 1953 (section 3). Participating entities in the trial, including the three additional software vendors (DigiMed, Sigma/MPS, and Compact) and the 155 additional RACFs, must adhere to specific obligations. These obligations include ensuring their electronic medication management systems adequately support patient safety, privacy, and security, as well as meeting the requirements for the National Residential Medication Chart (NRMC) (section 4). Each software vendor and RACF must enter into a Deed of Agreement with the Department, clearly outlining their obligations and expectations (Consultation section). Furthermore, they must ensure that once medication orders are rendered and electronically authenticated, they are sent directly to the approved supplier's dispensing software for dispensing, and that claims for payment are sent electronically to the Chief Executive Medicare by the approved supplier. Breaches of the obligations outlined in the Amending Instrument can result in civil or criminal consequences. While specific penalties are not stated in the text, violations of the National Health Act 1953 and its associated regulations can lead to fines and imprisonment, depending on the severity of the breach. The Act also provides for the possibility of varying or revoking a special arrangement made under section 100(1), should the participating entities fail to meet their obligations or if the trial does not achieve its intended purpose (section 100(2) and (3)).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.