Device advice - Issue 4
Hospital medical devices newsletter
Your update on PHARMAC’s Hospital Medical Devices programme
Issue 4 - 14 February 2014
In this issue:
- Interim procurement activity – we’re underway
- What’s next for interim procurement?
- Establishing a framework for devices management – taking on board what you’ve told us
- Our proposed approach – have your say
- Medical devices and PHARMAC’s decision criteria review
- PHARMAC’s links with other health sector activity
- Keeping you informed
- Other PHARMAC business
PHARMAC has completed negotiation with suppliers and consultation with you, on the first range of hospital medical device products to be listed in the Pharmaceutical Schedule.
As of 1 February 2014, national contracts for a total of 186 wound care products and 135 disposable laparoscopic products are available to DHBs. These are listed in Part III of Section H (Optional Pharmaceuticals)* of the Schedule. You can find these here: www.pharmac.health.nz/medicines/hospital-devices/interim-procurement-project/current-activity/
The wound care products will be supplied by Mölnlycke Health Care Pty Limited, while Applied Medical will supply a range of disposable laparoscopic trocars and associated instruments.
The wound care contract offers an estimated total savings to DHBs of approximately $160,000 per annum nationally, while the agreement for the disposable laparoscopic instruments offers estimated total savings to DHBs of approximately $660,000 per annum nationally. Savings are based on current DHB usage, but the benefits could be greater if DHBs choose to use the contracts to buy a greater share of these products from these suppliers.
The purpose of the hospital medical devices interim procurement activity is to negotiate national pricing contracts with suppliers of particular products, most of which DHB hospitals are already using.
This opportunity provides DHBs with potential savings, which they can choose to take up by buying these products from suppliers using the new national contract. The deal offers DHBs a fixed price on the products, for a period of time.
PHARMAC is not restricting access to any items DHBs currently purchase. DHBs will continue to use their discretion over managing their own hospital medical devices budgets and which devices they choose to purchase.
If you have any questions about these contracts, more information is available here: www.pharmac.health.nz/medicines/hospital-devices/interim-procurement-project/current-activity
* PHARMAC received some comment from the sector that the term ‘Pharmaceutical’ was confusing when it comes to medical devices. We recognise this issue and will look at appropriate naming for this section of the Schedule in future.
PHARMAC has just closed a consultation on a potential agreement with another supplier of wound care products. A decision on listing these products on the Schedule will be made shortly.
We are also continuing negotiations with a number of suppliers of other hospital medical devices and hope to be able to reach agreement and consult the sector on more of these in the coming months. In particular, PHARMAC is in discussions on other laparoscopic products, wound care and sutures, and has invited proposals from orthopaedic suppliers of spine, trauma and maxillofacial products.
While we have identified particular device categories where we are undertaking activity, we remain open to approaches from suppliers of any other hospital medical device categories where national agreements could be beneficial to DHBs.
Any updates to our activity, will also be posted here: www.pharmac.health.nz/medicines/hospital-devices/interim-procurement-project/current-activity
Details about the framework we are using for all of our interim procurement activity can be found here: www.pharmac.health.nz/medicines/hospital-devices/interim-procurement-project
As we mentioned in our last newsletter, we received a great response to our consultation Applying the PHARMAC model for medical devices management (www.pharmac.health.nz/medicines/hospital-devices/consultations/adapting-the-pharmac-model-for-medical-devices-management) which sought input from the sector on the key considerations for managing hospital medical devices.
We are now using this information to help us form our proposed approach, which we will be seeking your feedback on shortly – more about this consultation is later in this newsletter.
We have now gathered much information, through a range of consultations and meetings with you in the sector. It was important that we did this, to make sure we had enough understanding of all considerations we need to take into account to work out how we will apply the PHARMAC model to this area. Your expertise has been essential to us being able to form a proposed approach.
As part of our previous consultation, we held a number of public forums. You can read summaries of the key issues that were discussed at each of these events here: www.pharmac.health.nz/medicines/hospital-devices/consultations/
We plan to publish a full summary of all submissions made in last year’s consultation, when we release our next consultation in April. We will also be publishing an overarching executive summary, reflecting the key themes we gathered from all of our information sources.
The next step is for us to complete development of a proposed approach to management, which we will then consult with you on. We will confirm the exact date for the release of the consultation in the next few weeks, but it is likely to be in April.
The proposal will explain our proposed approach to managing medical devices, including the tools and processes that we could draw on, depending on the circumstances in the category of products we are considering, at the time.
We have heard the message that it’s not one-size-fits all for devices, so we are aware that it’s unlikely that the process for considering products will be the same for every category. Therefore, this consultation will not be looking at the fine detail around how we are likely to make every decision.
We will show, at a high level, how what processes could work, once all of the enablers are in place, and some of the considerations we will take into account when tailoring the approach to a category area.
What we will be looking for is for you to review the proposal, identify the implications this might have on the work you do in the sector, let us know if you think there’s relevant information we haven’t considered; and advise how you think it could be implemented.
While we acknowledge that it may be some time before PHARMAC is fully implementing its management of medical devices, it is still very important that we hear from you in this consultation, so we can make sure the foundations for this work are solid.
Similarly to last time we consulted with you, we will be out and about, holding forums around the country. You will be able to provide feedback either through one of these meetings with us, or in writing. Submissions in any form will be considered and we encourage you to have your say.
Further details on where and when we will hold the forums will be sent to you over the coming weeks and will also be posted on our website.
If you have any questions about the next devices consultation, please email: firstname.lastname@example.org.
As mentioned previously, we are currently reviewing our decision criteria, as part of a wider review of our Operating Policies and Procedures. This is important for the development of our policies and processes for managing hospital medical devices.
Last year we held an initial consultation, asking for feedback from the public and our stakeholders on the current nine decision criteria and possible improvements. We’ve now considered all of the feedback we’ve received, and have developed a proposal for change.
That proposal will be released for a second round of consultation shortly, and stakeholders will have until April 21 to provide feedback, before a final decision is made by the PHARMAC Board.
Once the consultation is released, you will be able to find it on the decision criteria page of our website: www.pharmac.health.nz/about/operating-policies-and-procedures/decision-criteria-consultation
We are continuing to work alongside Health Benefits Limited (HBL), which is implementing the Finance, Procurement and Supply Chain Business Case in DHBs, and other organisations such as healthAlliance, whose work intersects with ours.
For more information on PHARMAC’s role in this process, please contact us.
We will regularly be updating all interested groups about the progress of the project.
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 or give us a call: 04 460 4990
You can also find all of our medical devices information on our website: www.pharmac.health.nz/medicines/hospital-devices
If you would like information about other PHARMAC activity, you can also sign up to receive one of our other newsletters like Inpharmation to keep up-to-date with how this work might affect you. There are also regular updates on the HML web pages.
You may be interested in PHARMAC’s activity over the past year and you can read this in our Annual Review.
If you want to stay in touch with the review of all PHARMAC’s Operating Policies and Procedures go to: www.pharmac.health.nz/about/operating-policies-and-procedures
Last updated: 26 January 2017