Pharmac Makes Progress Toward Transparency and Engagement Goals in 2024/25

Associate Health Minister David Seymour has welcomed the release of a summary report on Pharmac's progress against its 2024/25 Letter of Expectations (LoE), praising the agency's cultural shift toward greater transparency, consumer engagement, and accountability in pharmaceutical funding decisions.

"For many New Zealanders, access to medicines is literally a matter of life or death," Seymour said. "It's also the difference between a life of chronic pain and one of dignity and freedom. Pharmac must operate in a way that reflects this reality."

Transforming the Culture at Pharmac

The report reflects significant progress across 21 key expectations, eight of which have been fully completed as of October 2025. The changes are part of a broader Reset Programme launched following the 2022 Independent Pharmac Review, aimed at modernizing the agency's decision-making processes and rebuilding public trust.

Seymour emphasized that these reforms are in direct alignment with the ACT-National Coalition Agreement, which prioritizes consumer voice, transparency, and performance metrics in public health systems.

"We're creating a culture at Pharmac that keeps consumers in the loop because that's important to them," he said. "My expectation is that Pharmac should have strong processes that allow patients, their families, and clinicians to have a say in decisions that affect them."

Key Milestones Achieved

The report outlines the eight fully achieved expectations to date, which represent meaningful changes in both structure and engagement:

1. Proactive Transparency Pharmac has begun publishing materials of public interest and has launched a monthly consumer update forum where patients and stakeholders can engage directly with the Senior Leadership Team. This initiative builds on insights from recent independent engagement workshops.

2. Collaborative Health Sector Engagement New partnerships include the creation of the Health Sector Implementation Group and the Sector Equity Working Group, strengthening collaboration across health agencies and equity-focused organizations.

3. Culture and Sentiment Monitoring Pharmac now tracks organizational culture and stakeholder sentiment using quarterly and annual performance metrics, a move designed to embed accountability in the agency's internal operations.

4. Legal and Functional Review The agency continues to review its statutory objectives and engage proactively with legislative updates, particularly around medical technology procurement—an area long cited as needing reform.

5. Enhanced Consumer Participation The agency has increased consumer participation in decision-making, holding regular consultations with advisory groups, and publishing clearer and more frequent updates on clinical advice records.

Building on Recent Milestones

The summary report follows several recent publications that have reinforced Pharmac's trajectory of reform:

• 90-Day Reset Programme Progress Report (October 2025)

• Consumer Engagement Workshop Report (March 2025)

• Update on 2022 Independent Pharmac Review Recommendations (July 2025)

Seymour noted that feedback from consumer advocates has been "overwhelmingly positive" compared to prior years, pointing to a new level of collaboration between the public, advocacy groups, and Pharmac leadership.

"Five years ago, many attendees of the Medicines Summit would have been outside picketing Pharmac. Today, they are inside, having genuine conversations about how to deliver the best outcomes for New Zealanders," Seymour said.

Record-Breaking Budget to Support System Change

To support the agency's renewed mission, the Government has committed to unprecedented levels of funding for Pharmac:

• $6.294 billion allocated over four years

• $604 million uplift to expand Pharmac's capacity to negotiate medicine pricing and access

"The Government is doing its part," Seymour said. "We've given Pharmac its largest-ever budget so it can do what it was set up to do: deliver timely, affordable access to medicine for all New Zealanders."

Looking Ahead

While progress is being made, Seymour acknowledged that the work is far from over. However, the shift in culture, combined with tangible reforms and measurable outcomes, positions Pharmac as a more transparent, responsive, and people-centered agency.

These ongoing reforms aim to ensure that patients and clinicians feel heard, trust the process, and can rely on Pharmac to deliver equitable and effective pharmaceutical funding decisions.