National Health (Highly specialised drugs program for private hospitals) Special Arrangements Amendment Instrument 2010 (No. 2) (No. PB 84 of 2010)

Administered by Department of Health, Disability and Ageing

Legislation au F2010L02249 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 84 of 2010

NATIONAL HEALTH ACT 1953

NATIONAL HEALTH (HIGHLY SPECIALISED DRUGS PROGRAM FOR PRIVATE HOSPITALS) SPECIAL ARRANGEMENTS AMENDMENT INSTRUMENT 2010 (No. 2)

 

 

Summary

This legislative instrument in giving effect to recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC) amends Highly Specialised Drugs Program Arrangements under subparagraph 100(b)(i) made by legislative instrument number
PB 64 of 2010 which came into effect on 1 July 2010.  The amendments provide for changes to highly specialised drugs available at private hospitals to non-admitted patients, day admitted patients or patients on discharge.  The amendments are set out in the items of Schedule 1 to the instrument.

Purpose and operation

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

Subsection 85(1) provides that benefits are to be provided by the Commonwealth in accordance with Part VII in respect of pharmaceutical benefits.

Drugs and medicinal preparations to which Part VII applies are (with the exception of some medicinal preparations with additives) declared by the Minister by legislative instrument to be so under subsection 85(2). These are listed drugs as defined in subsection 84(1).

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).

Subsection 100(3) provides that Part VII of the Act has effect subject to a special arrangement made under subsection 100(1).

The declaration made under subsection 85(2) of the Act sets out the drugs and medicinal preparations to which Part VII of the Act applies.  Under subsection 100AA(1)(c) a special pharmaceutical product, for which special arrangements may be made under section 100, includes a drug or medicinal preparation declared under  subsection 85(2) of the Act.  Schedule 6 of the declaration under subsection 85(2) lists those drugs and medicinal preparations that may be made available under arrangements provided for by section 100 of the Act.

The Highly Specialised Drugs Program is a set of Arrangements made under subparagraph 100(b)(i) of the Act for the purpose of providing that an adequate supply of special pharmaceutical products will be available to persons who are receiving treatment with highly specialised drugs at private hospitals as non-admitted patients, day admitted patients or patients on discharge.

These Arrangements constitute a legislative instrument for the purposes of the Legislative Instruments Act 2003.

A provision-by-provision description of the instrument is contained in the Attachment.

This instrument, expressed to commence on 1 September 2010, was made on 3 August 2010.


Consultations

The Pharmaceutical Benefits Advisory Committee (PBAC) is the independent expert body, established by section 100A of the Act, which makes recommendations to the Minister for Health and Ageing about which drugs and medicinal preparations should be available as pharmaceutical benefits.  Under subsection 101(4) of the Act, a drug or medicinal preparation may not be declared to be a drug or medicinal preparation to which Part VII of the Act applies unless the PBAC has recommended that it be so declared.  When recommending a medicine be listed on the PBS, the PBAC takes into account the medical conditions for which the medicine has been approved for use in Australia, its clinical effectiveness, safety and cost-effectiveness compared with other treatments.

PBAC members are selected from consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and specialists, with at least one member selected from each of those interests or professions.  Remaining members are persons whom the Minister is satisfied have qualifications and experience in a field relevant to the functions of the PBAC, and that would enable them to contribute meaningfully to the deliberations of the PBAC.

The Commonwealth/State Highly Specialised Drugs Working Party (HSDWP) is a non-statutory body established by the Australian Health Ministers Advisory Council (AHMAC).  The HSDWP makes recommendations to the PBAC on the suitability of certain drugs for listing under the Highly Specialised Drugs Program.  The HSDWP considers the funding and administrative aspects of supply through the hospital system, and a recommendation for listing must be supported by a majority of Working Party members.  The HSDWP consists of representatives from State and Territory Health Departments and the Australian Private Hospitals Association, and is chaired by a representative of the Commonwealth Department of Health and Ageing.


ATTACHMENT

Paragraph 1:  provides that this instrument commences on 1 September 2010.

Paragraph 2:  provides that Schedule 1 amends PB 64 of 2010.

Schedule 1: provides for the following amendments: 

 

 

Preamble paragraphs:

 

Paragraph 12 is amended to reinstate subparagraph 12(d) with reference to lenalidomide which was omitted in error from PB 64 of 2010.

 

SCHEDULE 2

Deletion of Form

Ritonavir

Capsule 100 mg

 

Overview

The National Health (Highly Specialised Drugs Program for Private Hospitals) Special Arrangements Amendment Instrument 2010 (No. 2) amends the Highly Specialised Drugs Program Arrangements under subparagraph 100(b)(i) of the National Health Act 1953, as made by legislative instrument number PB 64 of 2010. This instrument was introduced to rectify an error in the original legislation and to address gaps in the availability of highly specialised drugs for patients receiving treatment in private hospitals. Enacted by the Australian Parliament, the instrument aims to ensure that an adequate supply of special pharmaceutical products is available to non-admitted patients, day admitted patients, or patients on discharge in private hospitals. The policy objective is to provide reliable and timely access to a wide range of medicines for all Australians, in line with the Pharmaceutical Benefits Scheme (PBS), while ensuring that highly specialised drugs are adequately supplied to those in need.

Scope and Application

The National Health (Highly Specialised Drugs Program for Private Hospitals) Special Arrangements Amendment Instrument 2010 (No. 2) amends the Highly Specialised Drugs Program Arrangements under the National Health Act 1953. This legislative instrument is a response to recommendations made by the Pharmaceutical Benefits Advisory Committee (PBAC) and is designed to enhance the availability of highly specialised drugs to non-admitted patients, day admitted patients, or patients on discharge at private hospitals. The amendments address errors and omissions from the initial arrangements and are set out in Schedule 1 of the instrument, which came into effect on 1 September 2010. The changes include reinstating certain drugs that were omitted in error and making other necessary adjustments to ensure the program operates effectively. The Act applies to individuals receiving medical treatment in private hospitals who require highly specialised drugs that cannot be conveniently or efficiently supplied under the Pharmaceutical Benefits Scheme (PBS). The geographic reach of this instrument is national, as it pertains to the Commonwealth's provision of pharmaceutical benefits across Australia. The instrument extends the application of the Act through subordinate legislation, ensuring that the Highly Specialised Drugs Program remains responsive to the needs of patients and the recommendations of the PBAC.

Key Provisions

The main operative sections of this legislation are those that amend the Highly Specialised Drugs Program Arrangements under subparagraph 100(b)(i) of the National Health Act 1953 (the Act). These amendments, set out in the items of Schedule 1 to the instrument, provide for changes to highly specialised drugs available at private hospitals to non-admitted patients, day admitted patients, or patients on discharge (Section 2). Specifically, paragraph 12 of the preamble is amended to reinstate subparagraph 12(d) with reference to lenalidomide, which was omitted in error from PB 64 of 2010 (Schedule 1). Additionally, Schedule 2 deletes ritonavir from the list of drugs available under the program. The obligations and requirements imposed by this legislation on the parties or entities it governs primarily revolve around ensuring that the Highly Specialised Drugs Program operates as intended to provide an adequate supply of special pharmaceutical products to eligible patients. This includes ensuring that drugs and medicinal preparations are appropriately listed and available for use in private hospitals, and that any errors or omissions are corrected in a timely manner. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a critical role in this process by recommending which drugs should be included in the program based on their clinical effectiveness, safety, and cost-effectiveness. There are no explicit offences, penalties, or civil/criminal consequences mentioned in the text for breaches of this legislation. However, the overarching framework of the National Health Act 1953 and the Pharmaceutical Benefits Scheme (PBS) includes provisions for penalties and enforcement measures in the event of non-compliance. For example, under the PBS, there are penalties for misuse or oversupply of drugs, which could include fines or other sanctions. The specific penalties would depend on the nature and severity of the breach, as well as the relevant provisions of the Act and any associated regulations or guidelines.

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