Better value in hospitals
Our engagement with DHBs continued with a series of medical device forums attended by over 300 DHB staff. The forums provided an update on the categories PHARMAC is working on, and what to expect in the coming years.
Single use instruments
Respiratory consumables & equipment
Negative pressure wound therapy
IV and needles
Endomechanical & electrosurgical
Urology, ostomy & continence
PPE, drapes and gowns/procedure packs
Rhythm devices and electrophysiology
Patient monitoring including ECG
Our intention is to have all of these categories under PHARMAC management by the end of 2019.
Change is not going to happen all at once. We’re taking a carefully planned and staged approach as we work to bring the full scope into PHARMAC, obtaining clinical advice and consulting widely with the sector as we go.
We’ve also taken steps to explore how promoting greater competition might work with medical devices. We did this initially with a small group of wound care products, negotiating ‘market share’ contracts which guaranteed a portion of the market to the successful suppliers. Though small, this process was successful in extracting further savings from the products chosen.
In order to agree the list of wound care products, we formed our first devices advisory group made up of clinical experts from DHBs. We’ve also formed an interventional cardiology advisory group to look at devices used in interventional cardiology.
Text version of "Our progress" graphic
As of 1 July 2017:
- $20.8 million net savings over 5 years from contracts in 2016/17
- 8 categories
- 33 suppliers
- 45,000 line items on the pharmaceutical schedule, worth $109 million
- $39.42 million total value of savings over 5 years from all contracting to date.
We’re continuing to make investments in hospital medicines where we see good value opportunities.
Over the past year we’ve made savings of nearly $9 million available through our commercial activities around hospital medicines. Through our agreement with DHBs, we’ve been able to reinvest nearly all of this funding - $8.42 million – into new investments in hospital medicines.
This includes four new medicines, like plerixafor for stem cell mobilisation, and idarucizumab, which is used to treat bleeding in patients using dabigatran.
These figures don’t include hospital-administered cancer medicines, such as treatments for advanced melanoma, or for advanced breast cancer, which were also funded through the Combined Pharmaceutical Budget.
Last updated: 19 March 2019