In March 2007, following an extensive tendering process by the Australian Government, AHA was appointed as the Administration Agency for the Community Service Obligation (CSO) Funding Pool.
The CSO Funding Pool began on 1 July 2006 and was established under the Fourth Community Pharmacy Agreement between the Australian Government and the Pharmacy Guild of Australia. The CSO Funding Pool provides indexed funding of $150 million a year to eligible CSO Distributors that meet specific Service Standards for the delivery of Pharmaceutical Benefits Scheme (PBS) medicines to community pharmacies.
The purpose of the CSO Funding Pool is to ensure that all Australians have timely access to the PBS medicines they need, regardless of where they live. The CSO Funding Pool makes it commercially viable for pharmaceutical wholesalers to supply the full range of PBS medicines to pharmacies across Australia, regardless of pharmacy location and the relative cost of supply. Under these arrangements, payments are provided directly to wholesalers who supply the full range of PBS medicines to any pharmacy, usually within 24 hours, and who meet certain service standards. These payments are over and above those made directly to pharmacists to cover the costs of supply from the wholesaler.
Administration of the Funding Pool involves several complex functions, including:
- undertaking payment calculations
- monitoring the performance of eligible CSO Distributors against specific service standards
- administering a complaints process and sanctions framework.
AHA is currently ensuring that the aims of the CSO Funding Pool are met by working objectively and independently to efficiently carry out the above administrative functions. Our team includes
Mr Grant McKirdy who has over 19 years senior experience in pharmaceutical manufacturing and wholesale distribution.
Detailed information regarding the operation of the CSO Funding Pool and the obligations of CSO Distributors is available on the
Department of Health and Ageing's website.
Community Pharmacies are able to lodge a complaint about the performance of any CSO Distributor /Wholesaler against the CSO Service Standards and Compliance Requirements.
Complaints can be lodged in writing, either electronically or in hard copy, to the following address:
or to
Complaints Officer, CSO Funding Pool Administration Agency
Locked Bag 32005 Collins St East, VIC 8003
Further detail about lodging a complaint are provided as follows: