Pharmaceuticals Benefits Scheme in Victoria's public hospitals

Key messages

Hospitals have access to the Pharmaceutical Benefits Scheme (PBS) and are able to prescribe PBS medications for up to one month’s supply.
Hospitals have access to subsidised chemotherapy drugs for use by day-admitted patients and outpatients.
Victorian public hospitals can access Commonwealth funded drugs through the Highly Specialised Drugs Program.

Co-payments, safety net and dispensing pharmaceuticals in public hospitals

Co-payments

A co-payment is a charge levied whenever a prescription is dispensed. Hospitals may choose to collect a co-payment, which would be collected in the same way as it is collected in the community.

Further information on co-payments can be found at Patient co-payments.

The current co-payment amounts and Safety Net levels can be found at Fees, Patient Contributions and Safety Net Thresholds.

Patients who do not meet the PBS requirements

Where a PBS listed drug is prescribed outside the PBS requirements, Medicare Australia will not reimburse the cost of the drug, and this will have to be fully funded by the hospital or the patient.

Safety Net Scheme

The Safety Net Scheme operates in hospitals. This means both PBS and non-PBS public outpatient medicines (up to the amount of the applicable co-payment) can be added to a Safety Net Card. Outside the hospital, only PBS items can be added to the Safety Net Card.

More information on the Safety Net Scheme can be found at PBS Safety Net thresholds - Pharmaceutical Benefits Scheme - Services Australia

Dispensing

Patients do not have to have their medications dispensed at the hospital. They may choose to go to a community pharmacy.

Small and rural hospitals may find it viable to send most or all patients to community pharmacies for dispensing. Metropolitan hospitals might also find it convenient to send patients to their local pharmacy for dispensing on weekends and after hours.

Highly Specialised Drugs Program

The Commonwealth Department of Health administers all claims and approvals of highly specialised drug (HSD) prescriptions.

Read more about Section 100 - Highly Specialised Drugs program on the PBS website.

Information on prescription requirements and arrangements for dispensing and claiming for these drugs can be found on the Services Australia website Prescribing Highly Specialised Drugs.

Efficient Funding of Chemotherapy (EFC) schedule

For comprehensive information on the provision of Section 100 chemotherapy cancer drugs through the PBS, visit the EFC section on the PBS website.

Application for hospital to become an approved PBS supplier

Information for hospitals on the application process to supply PBS medicines and HSD can be found at Become an approved supplier (Hospital Authority).

Reviewed 30 March 2026

Health.vic

Contact details

Pharmaceutical Programs Department of Health

bpot@health.vic.gov.au