Projects Pharmaceuticals

Community Service Obligation (CSO) Funding Pool Administration Agency

Projects Pharmaceuticals

Community Service Obligation (CSO) Funding Pool Administration Agency

Projects Pharmaceuticals

Community Service Obligation (CSO) Funding Pool Administration Agency

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 (CSO Distributors) 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 totalling almost $200 million per annum are provided directly to Distributors who supply the full range of PBS medicines to any pharmacy, within 24 to 72 hours, and who meet certain service standards.

AHA has administered the CSO Funding Pool since 2007. Our role involves several complex functions, including:

  • Securely collect, store and analyse around 2 million lines of confidential data per month
  • Undertake calculations of payment to eligible CSO Distributors, totalling almost $200 million annually
  • Monitor the performance of CSO Distributors against the CSO Service Standards and Compliance Requirements
  • Administer a complaints process and a sanctions framework.

The CSO Service Standards and Compliance Requirements define the minimum services, standards and operating arrangements which CSO Distributors must meet to be eligible for payment.  These include a requirement to stock the full range of PBS items and to deliver them to any pharmacy in Australia (except a few very remote locations) generally within 24 hours of ordering.  CSO Distributors must:

  1. Supply to any Community Pharmacy within their national or state jurisdiction, including Rural and Remote pharmacies
  2. Supply any brand of any PBS Medicine (as defined) on request, including Low Volume PBS Medicines
  3. Maintain specified stocks of PBS Medicines
  4. Supply PBS Medicines at or below the Approved Price to Pharmacist
  5. Supply PBS Medicines promptly, within 24 to 72 hours
  6. Make available a daily delivery service to Community Pharmacies within their national or state jurisdiction as part of its standard service delivery infrastructure.

Further information about the operation of the CSO Funding Pool and the obligations of CSO Distributors is available at the Department of Health’s CSO website and 6cpa website.

Community pharmacies are able to lodge a complaint about the performance of any CSO Distributor (wholesaler) that has failed to comply with the CSO Service Standards and Compliance Requirements.

Complaints can be lodged in writing, either:

electronically to: admin@csoagency.com.au

or in hard copy to: Complaints Officer, CSO Funding Pool Administration Agency, Locked Bag 32005, Collins Street East, VIC 8003

or call us: 1300 309 213.

Further detail about lodging a complaint is available on the Department of Health’s CSO website.

The CSO Funding Pool was established in July 2006, and makes it commercially viable for pharmaceutical wholesalers to supply the full range of PBS medicines to pharmacies across Australia, regardless of location and the relative cost of supply.