Device advice - Issue 11
Hospital medical devices newsletter
Your update on PHARMAC’s Hospital Medical Devices programme
Issue 11 – 7 July 2015
In this issue
The Pharmaceutical Schedule lists over 14,000 items across 15 contracts. The value of these contracts is approximately $45million, and can deliver DHBs $13.2 million in savings over a five year horizon of the contracts.
PHARMAC’s role in managing hospital medical devices is about improving national consistency in the treatment of patients, providing for appropriate variation where needed, and freeing up health spending that can be re-invested in the health sector. Appropriate clinical advice is critical and underpins our approach to this work.
The table below gives you an overview of our current activity and contracts negotiated. You can follow the supplier links to see each contract for further information.
|Category||Approximate total spend in market||Approximate annual value contracted||Approximate contracted savings |
|Wound care||$32 million||$31 million||$3 million|
|Sutures||$12 million||$2 million||$200,000|
|Disposable laparoscopic equipment||$8 million||$4 million||$6 million|
|Orthopaedic (spine and trauma)||$20-30 million||$3 million||$800,000|
|Interventional cardiology||$15-20 million||$8 million||$3 million|
As well as negotiating contracts in the five categories listed above, you may be aware that PHARMAC is also planning national contracts in seven other categories, which were identified in consultation with the sector. These categories are:
- sterile wraps and associated consumables
- single use instruments
- mechanical compression devices and consumables
- surgical gloves
- hand hygiene
- anti-embolism compression hosiery.
Since our last newsletter, PHARMAC has secured a fourth contract for interventional cardiology items. Following a consultation letter in April, PHARMAC listed a range of 350 interventional cardiology products with Abbott Laboratories. We are continuing further negotiations with existing DHB suppliers within the interventional cardiology category. The items in the Abbott contract are now listed in Section H of the Pharmaceutical Schedule.
We also recently consulted on a proposal to list a range of interventional cardiology products supplied by N Stenning. The consultation closed 3 July 2015 and sought feedback on an agreement for N Stenning’s Cristal Valvuloplasty Balloon range.
PHARMAC is currently completing planning work in the sterile wraps and associated consumables category with the aim of releasing an Expression of Interest (EOI). An EOI would be advertised on the New Zealand Government Electronic Tenders Service (GETS) as well as our website.
Sterile wraps and associated consumables is one of the 12 categories that were identified in consultation with the sector for PHARMAC to begin initial medical devices work.
In April, we consulted with the sector again by releasing a discussion document on our proposed approach to market share procurement.
The discussion document outlined the proposed next stage of our hospital medical devices activity, which would see us offering suppliers an assured portion of the market in return for competitive pricing and quality products.
Thank you to those of you who responded to the discussion document, providing us with your comments. The feedback that we received is helping to refine our approach as we consider our next steps. A summary of the feedback, along with an outline of our next steps will be released in due course and we will update you in the next issue of Device Advice.
Although the consultation is formally closed, we welcome your feedback about our proposed approach at any time. You can email us at firstname.lastname@example.org.
The Wound Care Advisory Group (WCAG) met for the fourth time in June 2015. The Group was established in 2014 and is made up of wound care specialists nominated by the National Wound Care Society of New Zealand, as well as a plastic surgeon. Their objective clinical advice continues to substantially assist us in appropriately categorising wound care products, as well as exploring options to standardise and rationalise various subcategories within wound care.
Earlier this year, the Group identified some subcategories for which it considered a market share procurement approach would be appropriate. These subcategories were included in our discussion document on our proposed approach to market share procurement, which we are now considering the feedback from.
NZ Wound Care Society Conference – May 2015
PHARMAC had a stand at the annual Wound Care Society Conference in Blenheim recently. This was a great opportunity for us to speak to a range of health care professionals about our medical devices activity. We had a great response from the conference delegates who provided us with useful feedback about our proposal to consider wound care as the first category to be managed under market share procurement.
The PHARMAC stand also had a competition to ‘guess the length of the bandage’ on Warren our wound care monkey. Congratulations to Ruth Carr, a Registered Nurse from Northland DHB who guessed the correct length (3.2m). She won a fruit basket delivered to her work.
Cardiac Society of Australia and NZ – June 2015
PHARMAC also attended the 2015 Annual Scientific Meeting of the Cardiac Society of Australia and New Zealand in Auckland last month. This was another great opportunity to discuss our medical devices activities and talk more about our current contracts in the interventional cardiology category (which are currently Abbott, Terumo Australia, Medtronic and Bio-Excel).
PHARMAC staff will be attending the upcoming Royal Australasian College of Surgeons (Queenstown) in August, the NZ Sterile Services Association Annual Conference (Wellington) and Perioperative Nurses College Conference (Palmerston North) in September. If you are planning to attend any of these, make sure you come and visit at the PHARMAC stand.
We are always keen to share our work with you and have a range of topics we can talk about with your professional organisation or DHB. 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 at email@example.com.
We’re keen to answer your questions about PHARMAC’s medical devices work. As these may be questions that your colleagues have an interest in also, we will continue to share the answers anonymously. You can send through any queries you have to firstname.lastname@example.org.
Q: Why can’t category contracts be announced and listed all at once, rather than contract by contract?
A: We acknowledge that DHBs would prefer to review opportunities in a complete category at one time, however this would require all incumbent DHB suppliers to agree before any savings can be made. By listing the items in the Schedule from a contract once it’s negotiated DHBs are able to make immediate savings from our negotiated contracts for items they may already be purchasing.
Last updated: 19 February 2019