National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 2020

Administered by Department of Health, Disability and Ageing

Legislation au F2020L00052 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 2020

 

PB 11 of 2020

 

 

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) in twelve approved residential care services. 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 2020 (PB 11 of 2020) (the Amending Instrument) is to amend the Schedule to this Special Arrangement to allow additional residential aged care facilities to participate in the trial. These additional residential aged care facilities have been incorporated within the trial to allow the Department to evaluate the medicines safety and quality impacts of transitioning from a paper based medication chart to an electronic National Residential Medication Chart system; implementation barriers; and costs and considerations for residential aged care facilities seeking to implement these systems. The trial remains restricted to the three electronic medication management software providers identified within the original trial arrangement. 

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

 

 


Consultation

The Department consulted with the facilitating software vendor who supported the amendment, and relevant state and territory governments.  

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 2020 (PB 11 of 2020)

 

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 2020, and that it may also be cited as PB 11 of 2020.

 

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 2020, published as PB 11 of 2020, is an instrument made under section 100(2) of the National Health Act 1953. This amendment to the original Special Arrangement of 2018 allows additional residential aged care facilities to participate in a trial of electronic medication management systems, thereby expanding the scope of the trial beyond the initial twelve approved residential care services. The primary objective of this trial is to assess the safety and quality impacts of transitioning from paper-based medication charts to electronic National Residential Medication Charts, identify any implementation barriers, and evaluate the costs and considerations for facilities aiming to adopt these systems. This trial is limited to the three electronic medication management software providers initially involved in the trial. The enactment of this special arrangement is overseen by the Minister, who has the authority to vary or revoke such arrangements, with the amendments being subject to the provisions of Part VII of the National Health Act 1953. The amendment became effective the day after its registration, following consultations with the relevant software vendor and state and territory governments.

Scope and Application

The National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 2020, made under section 100(2) of the National Health Act 1953, amends the existing trial arrangement to allow additional approved residential aged care services to participate in the trial of electronic medication management systems. This amendment is designed to provide a broader evaluation of the transition from paper-based to electronic medication charts, including assessing the impact on medicines' safety and quality, identifying implementation barriers, and considering costs and logistical issues for residential aged care facilities. The trial is limited to three specified electronic medication management software vendors and approved prescribers within participating facilities, who can prescribe pharmaceutical benefits directly from the electronic system without the need for a separate paper prescription. The trial operates under a special arrangement that can be varied or revoked by the Minister, and it is subject to the provisions of Part VII of the National Health Act 1953. The trial's geographic reach is confined to Australia, with specific facilities identified in the Schedule of the Special Arrangement. The Amending Instrument comes into effect the day after its registration, in line with the requirements of the Legislation Act 2003.

Key Provisions

The National Health (Electronic National Residential Medication Chart Trial) Amendment (Approved Residential Care Services) Special Arrangement 2020, made under section 100(2) of the National Health Act 1953 (the Act), is designed to expand the scope of the original trial that allows the use of electronic medication management systems in approved residential care services. The Amendment introduces additional facilities into the trial, which aims to evaluate the transition from paper-based to electronic medication charts. This expansion is critical for the Department to assess the impact on medication safety and quality, as well as the implementation challenges and financial considerations for residential care services. The main operative sections of this Amendment, specifically section 4, mandate the inclusion of additional residential care services into the trial. These services, now listed in the amended Schedule, can participate in using electronic medication management systems to facilitate the prescribing, dispensing, and administration of medications. The amendment allows approved prescribers within these services to prescribe pharmaceutical benefits directly from the electronic system, eliminating the need for a separate paper-based prescription. Once the electronic prescription is authenticated, it is transmitted directly to the supplier's dispensing software, and the dispensed medication is sent to the care facility for patient administration. The claim for payment is then sent electronically to the Chief Executive Medicare by the approved supplier. This Amendment imposes specific obligations on the parties involved. The approved residential care services must ensure that they use the designated electronic medication management systems as specified in the Schedule. The approved suppliers and software vendors must adhere to the electronic processes outlined for prescribing, dispensing, and claiming payments. The Department is responsible for overseeing the trial and ensuring compliance with the terms of the Special Arrangement. The facilities participating in the trial must also provide data and feedback to the Department to assist in the evaluation of the trial's outcomes. Failure to comply with the terms of the Special Arrangement may result in civil or criminal consequences. While the exact penalties are not specified in the text, breaches of the National Health Act 1953 can lead to significant penalties. For corporations, penalties can include substantial fines, and for individuals, penalties can include imprisonment, fines, or both. The specific penalties depend on the nature and severity of the breach, and the courts have the discretion to impose appropriate sanctions based on the circumstances of each case. The Act provides for enforcement actions by the Department, which may include investigations, compliance orders, and legal proceedings to ensure adherence to the provisions of the Special Arrangement.

Legal classification tags

Area of Law
Health Law
Instrument
Statutory Instrument
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Regulatory Standards
Catchwords
Electronic medication order chart systems

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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.