Curtin University, Little Green Pharma (LGP) and the Health Insurance Fund of Australia (HIF) have joined together to establish QUEST Global, building on the outcomes of the original QUEST Initiative research project.
Australians diagnosed with any of 200 chronic conditions may qualify to take part in the study, which will investigate how medicinal cannabis treatment affects health economic outcomes and patient quality of life.
Preliminary findings from the QUEST Initiative have shown meaningful gains across quality of life measures, including mobility, functionality, pain, sleep, anxiety and depression.
QUEST Global will take a more granular approach, looking at whether medicinal cannabis can reduce the number of medicines a patient needs and how often they require healthcare services.
Lead researcher Associate Professor Richard Norman, from the Curtin School of Population Health, said: "People living with chronic conditions… face significant challenges that impact their everyday life.
"Using medicinal cannabis as a treatment option can help to improve their outcomes and reduce their level of suffering and this study is an opportunity to quantify this.
"As part of the study, participants can access pharmaceutical-grade cannabis oils and flower medications made locally, as well as book a range of affordable, independent doctors who are experienced medical cannabis prescribers.
"We hope to gain more information about the benefits of using medicinal cannabis to treat chronic conditions and how we can make these types of medications more economical going forward."
LGP head of research and innovation Dr Leon Warne added: "The increased focus on health economics in QUEST Global will mean ongoing costs will be analysed and provide a framework for thinking about how Australia should allocate its limited health resources to meet people's demands and needs for healthcare services, health promotion and prevention."

HIF was the first Australian health fund to publicly declare support for medicinal cannabis treatments and offer rebates on products. CEO Justin James said the not-for-profit was proud to continue backing research into the health benefits of medicinal cannabis.
He added: "We believe this study, like the QUEST Initiative, will provide insights that will be valuable, not just to HIF and its members, but the industry as a whole."
QUEST Global will run for five years with no limit on participant numbers. Those who enrol will be able to purchase medicinal cannabis products at a discounted rate, with all medications supplied by LGP.
The announcement comes after encouraging interim results from the QUEST Initiative, which pointed to considerable improvements in quality of life among Australians managing chronic conditions. Those findings are currently being compiled for peer review and publication.
The QUEST Initiative received endorsements from MS Research Australia, Arthritis Australia, Chronic Pain Australia, Epilepsy Action Australia and HIF. It was named R&D Project of the Year at the The Cannabis Observer Awards in June.