Device advice - Issue 9
Hospital medical devices newsletter
Your update on PHARMAC’s Hospital Medical Devices programme
Issue 9 - 27 February 2015 (updated 30 March)
Latest activity at a glance
In this issue:
The Pharmaceutical Schedule now lists over 14,000 items across 16 contracts. The value of these contracts is approximately $41 million.
Savings on current volume and mix of products are estimated at over $11.9 million over a five year horizon of the contracts. The savings arise due to price concessions that have been achieved.
|Category||Approximate total spend in market||Approximate annual value contracted||Approximate contracted savings (5 year)||Suppliers|
|Wound care||$32 million||$27.7 million||$2.8 million||3M
Smith & Nephew
|Sutures||$12 million||$1.5 million||$190,000||USL Medical
|Disposable laparoscopic equipment||$8 million||$4.2 million||$6.0 million||Covidien
|Spine and trauma||$20-30 million||$2.5 million||$0.7 million||Stryker|
|Interventional cardiology||$15-20 million||$4.7 million||$2.1 million||BioExcel
PHARMAC has secured the first contract in the device category for orthopaedic trauma, spine, and cranio-maxillofacial (CMF) implants. This is the first agreement in the orthopaedic implants category, delivering savings to DHBs on medical devices that they are already using.
The Stryker New Zealand Ltd agreement allows DHBs to spend less on devices that many of them are already purchasing. The agreement covers over 7000 listings of trauma, spine and CMF implants. Stryker’s range of products is available for DHBs to purchase at PHARMAC negotiated prices from 1 March 2015.
This is part of our ongoing work to get nationally consistent lower prices, and reduce future pricing pressures, on items that many DHBs are already using. We are building a catalogue of contracts to enable savings to be made in the future.
The Stryker agreement offers initial savings of $190,000 based on current DHB usage, but DHBs could potentially gain greater benefits if they increase their product mix to include a greater amount of Stryker items.
We are continuing further negotiations with existing DHB suppliers within the orthopaedic implants category to secure more national agreements that will deliver further savings.
We are open to feedback on timeframes, formats or processes that would make changes easier. Stryker is able to provide support and education services for DHB personnel on appropriate use of its devices.
You can view the list of hospital medical devices on the Pharmaceutical Schedule.
PHARMAC and healthAlliance have different but complementary roles in supporting DHBs to provide sustainable, affordable healthcare. We’re both continuing to work closely together to support DHB procurement of national contracts.
|Categories where PHARMAC has national contracts in place:||Categories where PHARMAC is undertaking planning:||healthAlliance is responsible for all capital spend and operational spend in these categories:|
PHARMAC has begun activity to put national contracts in place covering a selection of medical device categories. This involves negotiating and agreeing fixed price contracts with suppliers of products - most of which are already used in New Zealand hospitals.
Whilst DHBs aren’t required to change products, they can gain greater savings if they increase the proportion of the better value products available under PHARMAC national contracts.
Over the next decade, various categories of hospital medical devices will be undergoing different levels of activity. Some may progress towards national management faster than others. We will seek clinical advice and consult with the sector in advance of any changes.
From 1 July 2014, healthAlliance became the agent for any existing procurement activity within the categories noted above. They continue to have full responsibility for the national procurement of non-medical devices.
healthAlliance has undertaken procurement of some categories of hospital medical devices, in categories that PHARMAC is not yet considering. Eventually, PHARMAC contracts for medical devices will supersede existing healthAlliance contracts.
- The Wound Care Advisory Group met for the second time on 10 February 2015, and is due to meet again in May. The Advisory Group provides us with clinical advice on wound care. We are considering this advice, and beginning to look at options for standardisation within this category.
- If you are attending the New Zealand Wound Care Society 7th Biennial Conference(external link) in Blenheim this May, look out for PHARMAC staff at our stand. This year’s conference is titled ‘Wound care – A matter of balance’.
PHARMAC is giving you the opportunity to tell us how we are doing, what it’s like to work with us and what we can do better in a stakeholder survey which starts this week.
If you want to get involved and influence how PHARMAC works, visit our website to begin the survey.
The survey should only take 15 minutes to complete but you can hop in and out of the survey as you have time.
TNS, an independent research company, will be doing the survey on PHARMAC’s behalf.
It is one of the leading research and information companies in Australasia.
Please contact Anthony Bull, Senior Communications Advisor at PHARMAC on 04 901 2849 or firstname.lastname@example.org if you would like further information.
We are always keen to share our work with you and have a range of topics we can talk to your professional organisation or DHB about. If you have an event or seminar coming up that you would like a PHARMAC staff member to speak at, please feel free to get in touch with us.
You can email us at email@example.com or call 0800 660 050.
We will regularly be updating all interested groups about the progress of the devices work programme. Feel free to circulate this newsletter to anyone you think might be interested in our hospital medical devices work.
You are welcome to contact us directly at any time with proposals, suggestions or concerns.
Email us: firstname.lastname@example.org or give us a call: 04 460 4990
You can find all of our medical devices listed as an Addendum to Section H of the Pharmaceutical Schedule.
For general information about our activity visit PHARMAC and hospital medical devices.
Last updated: 31 January 2019