Device Advice - Issue 17
- We’re seeking proposals for single use instruments and medical devices used in the prevention of venous thromboembolisms.
- Proposals for orthopaedic products extended to 24 June 2016.
- Evaluation of wound care proposals now complete and we’re commencing negotiations with suppliers.
- Consultations on provisional agreements for the supply of sterilisation products and interventional cardiology closing soon. Consultation on an agreement with J&J for the supply of sutures closed last week.
- A DHB-wide Procurement Strategy has been approved and is supported by all 20 DHBs, NZHPL and PHARMAC.
In this issue:
The Pharmaceutical Schedule now lists about 15,500 medical devices. The savings to DHBs are estimated to be at least $20 million over five years, based on current usage. National contracting is just the beginning of our work and is already providing savings to DHBs on items that they are already purchasing, with no change required.
PHARMAC has kicked off activity in three more medical device categories. Last week, two Request for Proposals (RFPs) were published for single use instruments, and medical devices used in the prevention of venous thromboembolisms (VTEs). The RFP for devices used in the prevention of VTEs encompasses products across two categories we had initially identified in 2011 being; mechanical compression and consumables, and anti-embolism compression hosiery.
The addition of these RFPs mean we have now established procurement activity in 10 medical device categories, and are on track to having activity in all 12 categories by July.
Proposals for products in these categories are due by 23 and 30 June 2016, respectively.
The deadline for orthopaedic implants and associated consumables Request for Proposals (RFP) has been extended for a further two weeks. All proposals must be submitted by 24 June 2016.
PHARMAC is pleased with the quality and number of proposals we received in response to the Request for Proposals (RFP) for the supply of various wound care products.
We are now commencing negotiations with suppliers, seeking agreements for:
- Combine dressings (includes Gamgee dressings)
- Foam dressings – adhesive & non-adhesive (Excludes anti-microbial foam dressings and shaped foam dressings)
- IV pressure pads
- Low adherent dressings with adhesive border
Any market share agreements that result from negotiations will be consulted on. Consultation will also detail the proposed approach to implementation to support DHBs.
PHARMAC will not be awarding market share agreements for the following wound care subcategories included in the RFP:
- Compression bandages (includes compression bandage kits)
- Laparotomy sponges (sterile and non-sterile)
- Securement bandages (sterile and non-sterile)
- Foam shaped dressings
We decided not to progress to negotiations for these wound care subcategories as we considered the value offered did not clearly exceed the potential cost of implementation. PHARMAC may revisit market share options for the products at a later stage.
We have heard DHB feedback to be very mindful of the cost of change to DHBs when making decisions, and the clinical impacts of any decisions.
For products in these subcategories that have PHARMAC national agreements in place, those agreements will continue. DHBs can continue to choose which products to purchase in the subcategories we are not progressing with. Where there is a PHARMAC agreement for the DHB selected products, those items must be purchased via the PHARMAC agreement.
We currently have five national contracts for sterilisation products, and are now seeking feedback on provisional agreements for the supply of sterilisation wrap, transport trays and tray liners, with the following suppliers:
- Halyard – 32 products
- BSN Medical – 27 products
- REM Systems – 46 products
Halyard products are currently purchased by all DHBs. The provisional agreement with PHARMAC offers national savings to DHBs of $914,000 per annum. National savings of a similar magnitude would be realised if DHBs choose to take up the BSN and/or REM systems products, which are new to the DHB market.
If approved, the products would be listed from 1 July 2016.
Seeking expert clinical advice continues to be the cornerstone of our work in medical devices. We’ve recently sought nominations for an Interventional Cardiology Advisory Group that will be established soon. The group will be providing objective clinical advice around products in this category.
Provisional agreement with Biotronik
PHARMAC is seeking feedback on a proposal to list a range of Biotronik interventional cardiology products. If approved, this would mark the 11th national contract in this category.
The proposal would result in 288 interventional cardiology products being listed from 1 July 2016. The agreement would offer approximately $82,000 in savings per annum, across DHBs with Cath Lab services.
We’ve been seeking feedback on the provisional agreement and welcome any further responses by 3 June 2016.
Over the past four months, DHB staff, clinicians and procurement specialists have been working together to develop and approve a DHB-wide Procurement Strategy. The aim of the Strategy is to create better value for money by ensuring DHBs spend public funds as effectively as possible.
Both PHARMAC and NZ Health Partnerships (NZHPL) are closely involved with this work. The Strategy provides a strong foundation for PHARMAC’s work with DHBs and NZHPL. We support this initiative and are working closely with NZHPL and DHB staff to make it a success.
The Strategy reflects that PHARMAC will increase the scope of its medical device procurement activity over time, and DHBs will focus on ensuring this is well implemented. Good information and strong working relationships will be essential to this and we look forward to building on the base we have established with DHBs, and the formalisation of the relationship with the Joint Procurement Authority.
Suppliers may not notice much change in the short term as DHBs have agreed to prioritise extracting greater value from the work of government mandated organisations PHARMAC and MBIE. Over time, PHARMAC will increase its share of medical device procurement and DHBs will focus on ensuring these are well implemented. Suppliers should continue to talk to their current point of contact until notified otherwise.
You can read about the Procurement Strategy on the NZ Health Partnerships(external link) website.
Healthcare Congress – 21-22 June 2016
Our Chief Executive Steffan Crausaz is speaking at the Healthcare Congress on Tuesday 21 June about delivering value from medical devices. PHARMAC staff will also be at the conference and keen talk more about our work and answer any questions you have.
You can find further information about the programme on the Healthcare Congress website(external link).
Cardiac Society of Australia & NZ (CSANZ) – 23-25 June 2016
PHARMAC are attending the CSANZ Annual Scientific Meeting again this year. We’ll also have a stand at the Meeting which will be a great opportunity to discuss our medical devices activity and work in interventional cardiology more specifically. For more details on the conference, visit the CSANZ2016 website(external link).
Last updated: 26 June 2018