This is the text extract for Proposal for sole supply arrangement for respiratory devices - closes Friday 14 August, browse documents here.

18 July 2008

Proposal for sole supply arrangement for respiratory devices

Summary PHARMAC and Air Flow Products have signed a provisional agreement for the supply of respiratory devices (peak flow meters, medium volume spacers and masks). The proposal would result in Air Flow Products’ brands of these products being the only subsidised brands for a three year period. The agreement would result in largely unchanged access for these currently funded products, although prices would be reduced. An additional medium volume spacer device would become available and would be used in most instances instead of the existing spacer. The two spacer devices are identical with the exception of a colour difference, and that the current product is capable of being sterilised in an autoclave, whereas the new product is not. Where clinicians require an autoclavable product, the older product would remain available to them. Subsidised paediatric masks are able to be attached to both spacer devices. Proposal PHARMAC sought proposals for the sole subsidised supply of peak flow meters, spacer devices and masks for use with spacer devices last year. As a result of this request for proposals, PHARMAC and Air Flow Products Limited have reached a provisional agreement for the listing of the following products at the following prices, with effect from 1 October 2008:

Chemical Peak flow meter Peak flow meter Spacer device Spacer device Mask for spacer device Formulation Low range Normal range 230 mL (autoclavable) 230 mL (single patient) Size 2 Brand Breath-Alert Breath-Alert Space Chamber Space Chamber Foremount Child’s Silicone Mask Current price and subsidy $14.90 $14.90 $12.50 $4.10 Price and subsidy $13.75 $13.75 $11.60 $8.38 $3.28

Note that the descriptions above vary slightly from the current descriptions in the Pharmaceutical Schedule, although this is for increased clarity only; the products supplied are unchanged.

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Under the proposal, Air Flow Products would have sole supply status for peak flow meters, medium volume spacer devices and masks for spacer devices until 1 October 2011. Because of the significant price difference between the autoclavable and the new nonautoclavable (single patient use) spacer devices, the autoclavable product would be subject to the following endorsement restriction: Available where the prescriber requires a spacer device that is capable of sterilisation in an autoclave and the WSO is endorsed accordingly. Feedback sought PHARMAC welcomes feedback on this proposal. To provide feedback please submit it in writing by 4 pm on Friday 8 August 2008 to: Sean Dougherty Therapeutic Group Manager PHARMAC PO Box 10 254 Wellington 6143 Email: sean.dougherty@pharmac.govt.nz Fax: 04 460 4995

All feedback received before the closing date will be considered by PHARMAC’s Board (or Chief Executive acting under delegated authority) prior to making a decision on this proposal.

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