1. Introduction

Since 1993, the Pharmaceutical Benefits Advisory Committee (PBAC) has required that submissions to list a proposed medicine on the Pharmaceutical Benefits Scheme (PBS) incorporate an economic evaluation, as well as a clinical evaluation. The PBAC has also endorsed Guidelines for preparing a submission to the Pharmaceutical Benefits Advisory Committee (Version 5.0) (the PBAC Guidelines) for conducting economic evaluations and financial analyses. The PBAC Guidelines are available from the PBS website.

To ensure consistency and comparability within and between submissions to the PBAC and over time, it is essential that submissions use consistent measures of medical and other health-related services relevant to therapy involving a medicine, and cost them in a consistent manner. This manual has been developed to help sponsors to ensure consistency when preparing economic evaluations.

This manual has been designed to reflect the range of medical and other health‑related services that may be affected by the introduction of new medicines to the PBS. The services included in the manual are based on economic evaluations and financial analyses conducted in Australia and overseas, particularly in submissions to the PBAC. The principles adopted to determine the unit costs of services are based on widely accepted methods and analyses.

This manual is a dynamic document that is subject to ongoing review and periodic updating. As unit costs change and new data sources become available, the manual will also change. Users of the manual and other interested parties are encouraged to contribute to, and participate in, this process of change and improvement. Suggestions to improve the manual are welcome, and inquiries about any aspects of its contents or use should be directed to:

Pharmaceutical Evaluation Branch
MDP 910
Department of Health
GPO Box 9848
Canberra ACT 2601
PBAC@health.gov.au