The Federal Government introduced 60-day script dispensing at pharmacies which took effect on 1 September 2023.
To support pharmacy owners in regional, rural and remote Australia during the business transition for 60-day prescriptions, the Federal Government also introduced the Regional Pharmacy Transition Allowance (RPTA).
The program will run across four years, beginning on 1 September 2023 until 30 June 2027 and will provide an extra $148.2 million to support pharmacies in Modified Monash Model (MMM) 2-7 locations.
The new RPTA means over the next four years, eligible pharmacies dispensing 50,000 scripts annually may receive an extra:
-
- $52,030 for pharmacies in large regional centres (MM2)
- $396,909 for pharmacies in large rural towns (MM3)
- $344,697 for pharmacies in medium rural towns (MM4)
- $338,477 for pharmacies in small rural towns (MM5)
- $213,391 for pharmacies remote community (MM6)
- $198,263 for pharmacies in very remote community (MM7)
Eligibility
Modified Monash Model 2 Locations
To be eligible to participate in the RPTA a pharmacy must:
-
- Be open at least 20 hours per week;
- Have a registered pharmacist on site for 48 weeks of the year; and
- have script volumes in in the 12 months April 2022 to March 2023 of less than 68,739.
- For 2024-25 onwards, pharmacies in Modified Monash Model 2 locations must have had PBS and RPBS Script Volumes of less than 57,283 scripts between April 2022 and March 2023.
Modified Monash Model 3-7 Locations
To be eligible to participate in the RPTA a pharmacy must:
-
- Have had PBS and RPBS Script Volumes of less than 68,739 scripts between April 2022 and March 2023
- For 2024-25 onwards, pharmacies in Modified Monash Model 3-7 locations must have had PBS and RPBS Script Volumes of less than 57,283 scripts between April 2022 and March 2023.
- Be receiving the Regional Pharmacy Maintenance Allowance (RPMA).
- Have had PBS and RPBS Script Volumes of less than 68,739 scripts between April 2022 and March 2023
Eligible pharmacies in MMM 3-7 may receive funding to largely offset the expected average dispensing related revenue loss:
-
- Largely in full for 2023–24
- 60% for 2026–27.
Eligible pharmacies in MMM 2 may receive:
-
- nearly $12,500 in 2023–24
- more than $13,100 from 2024–25 to 2026–27.
The below tables outline how much a pharmacy will receive, based on the script volume bands and Modified Monash Model classifications:
2023 – 2024
|
Modified Monash Model Classification |
||||||
| April 22 to March 23
Script Volumes |
2 |
3 | 4 | 5 | 6 |
7 |
| 0 – 22,913 | $12,380 | $6,043 |
N/E |
|||
| 22,914 – 45,825 | $12,380 | $28,636 | $8,603 |
N/E |
||
| 45,826 – 57,282 | $12,380 | $45,399 | $30,591 | $14,164 |
N/E |
N/E |
| 57,283 – 68,738 | $12,380 | $56,959 | $44,265 | $32,027 | $17,316 |
N/E |
2024 – 2025
|
Modified Monash Model Classification |
||||||
| April 22 to March 23
Script Volumes |
2 |
3 | 4 | 5 | 6 |
7 |
| 0 – 22,913 | $13,065 | $6,043 | $2,983 |
N/E |
||
| 22,914 – 45,825 | $13,065 | $72,552 | $55,128 | $36,274 | $12,816 |
N/E |
| 45,826 – 57,282 | $13,065 | $113,175 | $99,531 | $82,437 | $62,620 | $56,214 |
| 57,283 – 68,738 |
N/E |
$62,933 | ||||
2025 – 2026
|
Modified Monash Model Classification |
||||||
| April 22 to March 23
Script Volumes |
2 |
3 | 4 | 5 | 6 |
7 |
| 0 – 22,913 | $13,065 | $25,766 | $10,105 |
N/E |
||
| 22,914 – 45,825 | $13,065 | $80,426 | $69,848 | $49,821 | $29,125 | $4,733 |
| 45,826 – 57,282 | $13,065 | $126,880 | $113,732 | $151,793 | $78,851 | $73,724 |
| 57,283 – 68,738 |
N/E |
$52,444 | ||||
2026 – 2027
| Modified Monash Model Classification | ||||||
| April 22 to March 23
Script Volumes |
2 |
3 | 4 | 5 | 6 |
7 |
| 0 – 22,913 | $13,065 | $22,857 | $10,910 |
N/E |
||
| 22,914 – 45,825 | $13,065 | $70,364 | $63,134 | $46,012 | $28,986 | $8,731 |
| 45,826 – 57,282 | $13,065 | $111,455 | $100,843 | $90,083 | $71,920 | $68,325 |
| 57,283 – 68,738 |
N/E |
$41,955 | ||||
How to apply
The Regional Pharmacy Transition Allowance is a new program and will be delivered by the Pharmacy Programs Administrator (PPA).
Pharmacies in Modified Monash Model 2-7 locations will need to register for the allowance through the Pharmacy Programs Administrator Portal. When registering, pharmacies in Modified Monash Model 3-7 locations will need to confirm they are currently receiving the Regional Pharmacy Maintenance Allowance when they register.
Registration for the Regional Pharmacy Transition Allowance program will be available in October 2023. Further information, including the program’s rules, will be made available on the PPA website in coming weeks.
How do payments work
The Regional Pharmacy Transition Allowance will commence on 1 September 2023, with registration being available via the PPA Portal in October 2023. The first payments will also be made to pharmacies in October 2023. Payments will be paid a month in arrears.
Pharmacies will not be entitled to claim for months where they weren’t registered for the program – for example, a pharmacy that registers in January 2024 will not be eligible to claim payments for September to December 2023.
Should you have any questions or need any help ensuring you receive all available assistance, please reach out to our team and we will endeavour to do our best to assist.
The team at Rose Partners
