Pharmac culture review finds ‘reset’ needed but staff doubt it’s possible

Pharmac board chairwoman Paula Bennett is confident change is possible. Photo / Mark Mitchell

Pharmac staff have doubts the drug-buying agency can make the wide-ranging culture “reset” called for in a recent review.

The agency today released a section of the latest review into Pharmac’s culture led by Debbie Francis, who also led the damning review of Parliament’s workplace culture.

Launched late last year, the review found “fundamental change in strategy and culture” was necessary to repair the organisation internally and address its damaged relationships with patient communities, who often expressed criticism about the agency’s decisions and its engagement with stakeholder groups.

The report’s executive summary, the sole section released by Pharmac included recommendations for Pharmac to better articulate its vision as its current focus on managing costs was “unlikely to inspire staff or drive the behaviours now being asked of Pharmac”.

The agency’s operating model was deemed not fit for purpose, and the review critiqued its “transactional approach to collaboration and partnerships”.

“It is clear partner agencies in the health system appear to see Pharmac as problematic to partner with.”

Sarah Fitt resigned as Pharmac CEO earlier this year. Photo / Mark Mitchell

While the review concluded changes within Pharmac were possible, it pointed to significant doubts held by staff.

“Staff at all levels of the organisation expressed a degree of scepticism as to whether such a shift will be possible.

“In addition, staff expressed a lack of confidence that current leadership would either listen or adapt, even as they acknowledged that adaptation was required.”

The review followed a period of change for the agency, having lost chief executive Sarah Fitt after she resigned earlier this year.

Pharmac board chairwoman Paula Bennett, who began in the role in April last year, welcomed the findings and said she was confident the public would soon see changes to the agency’s culture.

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.