About PHARMAC and medical devices
PHARMAC is responsible for which medicines and vaccines are funded for New Zealanders, manages medicine funding for DHBs, and negotiates national contracts for some hospital medical devices.
PHARMAC aims for best value for money while giving people around the country equitable access to treatments, regardless of where they live. Medical devices is the newest area of our activity, with work beginning in 2013.
We expect our work in DHB hospital medical devices to:
- improve national consistency and standardisation
- provide for local variation where needed
- free up health spending so it can be re-invested in the health sector.
$5.5 million annual savings to DHBs from national contracts
20,000: number of line items on the Pharmaceutical Schedule from 1 August 2016
$25 million: savings to DHBs over five years from national contracts
Current areas of activity
- wound care
- disposable laparoscopic devices
- interventional cardiology
- orthopaedic products
- sterilisation packaging products and associate consumables
- medical thermometer products
- single-use instruments
- surgical gloves
- hand hygiene
- venous thromboembolism prevention devices.
PHARMAC has negotiated national prices with suppliers on some items that DHBs are already purchasing. National contracting has achieved savings for DHBs while maintaining product choice for clinicians.
Market share procurement
As we look to increase standardisation, some products will have Hospital Supply Status. Unlike national contracting, DHBs will need to purchase specific brands of selected product types that PHARMAC has market share agreements for. This approach will offer more competitive pricing and a quality range of products while suppliers have an assured portion of the market.
Input from clinicians and other DHB staff
We need clinical advice so that we understand the products, how they are used, the clinical risks and product evaluation needs. PHARMAC will always seek advice before deciding which approach to take. Your views and input are essential to achieve the full benefits of this national management approach.
We will continue to work with specialist groups and consult with DHB staff as we expand our activities.
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Last updated: 4 February 2019