Analysis of the impact of the section 12 of CCALA on the pharmacy services at long term care facilities managed by VCH

In 2002, the BC government enacted the Community Care and Assisted Living Act. Section 12 of the act brings all assisted living and residential care facilities under one licensing regime. This brings changes to the way the health care providers are reimbursed for pharmaceutical services: from a lump sum per-year to a reimbursement for eligible drug costs, and a fixed sum per occupied bed per-month. This could lead to financial strain for Vancouver Coastal Health (VCH). In this paper, we analyse the potential impact of the new reimbursement policy on pharmacy services at the VCH ‘s residential facilities. We use the service-customers matrix method and a value chain analysis. The analyses suggest that the financial impact of the enforcement of Section 12 will be minimal for VCH. VCH can continue its current strategy, contract out the service, expand current business, or exit the market.