Device Advice - Issue 19
- Today we’ve announced the first market share agreements for a select range of wound care products. This is the first time we’ve negotiated these types of agreements for hospital medical devices.
- Our work in medical devices is delivering savings of around $30 million over five years – DHBs are paying less for the same quality products.
- We’re consulting on proposed changes relating to the Trans-Pacific Partnership Agreement – we welcome feedback by 28 October 2016.
In this issue:
PHARMAC is entering a new phase of its national hospital medical device contracting, as it implements the first market share contracts for a set of wound care products.
Today we’ve announced the approval of market share agreements, which award Hospital Supply Status for six wound care subcategories. Details on the decision can be found on the notification.
This is the first time that we’ve approved contracts that guarantee market share to a supplier, enabling more competitive prices to be negotiated. The wound care decision has several benefits for DHBs, with average savings of 22% across the categories.
Expert clinical advice from the Wound Care Advisory Group (WCAG) has underpinned our work in this category and we have placed high importance on engaging with DHB staff and other stakeholders, incorporating their feedback into our decision.
Savings across DHBs are about $3 million over five years. In combination with our national contracting work, this equates to total savings to DHBs of $29 million over five years which can be re-invested in other areas of health.
PHARMAC will have a strong focus on collaborating with DHBs on the implementation of these contracts. A detailed plan has been developed to support DHBs over the eight-month transition period. This will include working with DHBs and suppliers on transition plans, stock requirements and monitoring progress so that the agreed market shares are being met by July 2017 with no disruptions to supply.
The Pharmaceutical Schedule now lists over 20,000 medical devices. Our national contracts are providing a minimum saving to DHBs of $25.5 million over five years, based on current usage and with no change required. Along with national contract savings, the new market share agreements lift savings to DHBs to approximately $29.2 million over five years.
We’re now reviewing feedback we received from a recent consultation to add 11 new device categories to our work programme.
The categories proposed were selected from suggestions provided by DHB Procurement Leads, NZ Health Partnerships (NZHP) and healthAlliance. The 11 proposed categories represent significant areas of spending on medical devices, and many would be natural extension of the original 12 categories we started off with.
- Renal Dialysis
- IV Equipment & Consumables
- Ostomy & Continence
- Interventional Technologies
- Needles and Syringes
- Endomechanical & Electrosurgical
- Respiratory Consumables
- Anaesthetic Consumables
- Negative Pressure Wound Therapy
- Enteral Feeding Devices
PHARMAC will advise its confirmed categories once it has considered the feedback and made it decision taking it into account.
The first Interventional Cardiology Advisory Group (ICAG) meeting was held in September. The Group is made up of 10 clinicians who were appointed on the advice of the Cardiac Society of Australia and New Zealand and other key stakeholders.
The Group is providing PHARMAC objective clinical advice to help inform our future approach in this area.
We’re currently seeking feedback on proposed administrative changes to our applications process to meet New Zealand’s obligations under the Trans-Pacific Partnership (TPP).
Any changes related to the TPP would only take effect should the TPP be implemented in New Zealand.
The proposed changes involve setting a timeframe for considering certain medicine funding applications, and establishing a specific review process for those that PHARMAC has declined.
We’re also using this opportunity to propose some improvements for all applicants. New Zealanders can be assured that neither the TPP nor other proposals would change the fundamentals of the PHARMAC model.
We’re visiting a number of communities across New Zealand over the consultation period to talk about the changes we’re proposing to our application process. You can register online for a PHARMAC Forum near you.
Further information about the proposed changes and submitting feedback online can be done through our online portal.
Conferences we’ll be at over the next couple of months:
Perioperative Nurses College of NZNO, 27-29 October, Dunedin – come and visit us at our stand
NZ Institute of Healthcare Engineering, 9-11 November, Wellington
NZ Sterile Services Association – September 2016
PHARMAC had a stand at the NZ Sterile Services conference in Auckland recently. This was another great opportunity for us to talk with technicians again about our growing work in hospital medical devices- particularly as, since last years’ conference, there have been nine contracts for sterilisation packaging products and associated consumables. The prices we’ve negotiated are saving DHBs around $1 million each year, based on current volume with no change required.
Last updated: 31 January 2017