Device advice - Issue 1
Hospital medical devices newsletter
Your update on PHARMAC’s Hospital Medical Devices programme
Issue 1 - 19 August 2013
In this issue:
In the 2010/11 financial year, District Health Boards (DHBs) spent approximately $880 million on hospital devices, a cost which has been rising faster than the rate of economic growth over the last five years.
In 2012, the Government agreed to a phased plan for PHARMAC to progressively take on managing hospital medical devices, on the basis of expected benefits from a national procurement approach.
PHARMAC’s aim is to improve national consistency in the treatment of patients, provide for appropriate local variation where needed, and free up health spending that can then be re-invested in the health sector.
The quality of the devices and patient safety is critical and underpins our approach to this work.
We are currently working on two separate, but linked programmes within medical devices: Establishing how we will apply the PHARMAC model to management of medical devices; and interim national procurement of selected medical device product categories.
While we consider how we will apply the PHARMAC model for management, we are running a project to begin procurement of selected categories of medical device products in this financial year.
The basis of the Interim Procurement Project is to achieve some early savings for DHBs, through national procurement of a small group of items, before full management can begin. Essentially it will be looking to get the best price, for all DHBs, for particular items they are already using.
PHARMAC consulted on 11 categories identified for initial procurement activity and based on your feedback, we have now chosen three categories for immediate procurement activity, with the eight remaining categories to be worked on shortly.
PHARMAC will be negotiating national agreements for medical devices in these categories, which will then be added to the Pharmaceutical Schedule for DHBs to buy under the terms and pricing in the PHARMAC agreements.
Initially, the national agreements will be discretionary for DHBs to purchase from, with pricing listed on the Schedule. We will consult with clinicians and other stakeholders if this changes in the future. For more details about how the interim procurement process will work, and important information about the first three categories and contracts, please go to:
Work has begun on developing the framework for how medical devices will be managed by PHARMAC by mid-2015, moving to full budget management in the future.
An initial consultation gained feedback from the sector around how PHARMAC should engage clinicians to make sure clinical views are taken into account when adapting the PHARMAC model for medical devices management by mid-2015; and how to receive appropriate clinical advice for our funding activities from mid-2015 onwards.
The consultation responses have been analysed by PHARMAC and we will use all your feedback to form a draft clinical engagement framework, which we plan to consult on early in 2014. This will be part of a wider consultation on a proposed approach to medical devices management: as clinical engagement has connections with a range of other elements in the project it is therefore appropriate to consider all of these together.
In the meantime, we will be looking for more information from you later this year so we can continue work on developing our processes for applying the PHARMAC model. More information about this will be provided closer to the time.
The first three categories are:
- Wound care
- Orthopaedic Implants
You can read summaries of the submissions we received in response to all of our consultations on our website:
Key to the success of PHARMAC taking on management of medical devices is ensuring we work closely with our stakeholders; we will regularly be seeking your knowledge, expertise and experience in the use of medical devices to inform our decisions around how to apply the PHARMAC model in this area.
Given the huge range of health professionals who have interactions with medical devices in a hospital setting, we will be gathering as much input as possible from all groups.
We are also working alongside Health Benefits Limited (HBL), which is implementing a Finance, Procurement and Supply Chain Business Case in DHBs. Part of HBL’s work involves rolling out a National Product Catalogue and Financial Management Information System (FMIS) in DHBs. The Catalogue and FMIS are both key enablers for PHARMAC to take on management of hospital medical devices.
PHARMAC also has important relationships with healthAlliance, the National Health Committee (NHC) and the Ministry of Health.
We will regularly be updating all interested groups about the progress of the project.
At the moment, this newsletter will be specific to medical devices, but we are aware that some of you also receive newsletters and updates about management of Hospital Medicines. We expect to include all of this information into one newsletter over time.
Feel free to circulate this newsletter to anyone you think might be interested in this work.
You are welcome to contact us directly at any time with proposals, suggestions or concerns.
Email us: email@example.com
Give us a call: 04 460 4990
You can also find all of our medical devices information on our website:
Last updated: 26 January 2017