Device Advice - Issue 22
- Two more forums coming up at Dunedin and Hastings hospitals. Thanks to those of you who came along to talk with us at one of the seven others we've held.
- Two new othopaedic contracts that deliver savings to DHBs.
- Surgical glove RFP is completed and national contracts resulting from it are in place.
- Anaesthetic devices (small equipment and consumables) RFP has closed. We'll be assessing proposals and negotiating national contracts in the coming months.
In this issue
You can find a list of contracted suppliers for existing categories on our website, or search for products in PDF or excel format in ‘Optional Pharmaceuticals’ in Section H of the Pharmaceutical Schedule.
Orthopaedic implants and associated consumables
There are now four national contract agreements in this category, covering all sub-categories.
Latest orthopaedic agreements:
- LMT Surgical Pty Ltd – 1,300 products will be listed from 1 May 2017. DHBs that are currently buying these products will collectively save $20,000 per annum.
- Smith and Nephew Limited – further ranges of their orthopaedic joint implants and associated products, and further reductions in their trauma product pricing are now available. DHBs that are buying these products will collectively save $550,000 per annum.
These national savings are a minimum level of savings. DHBs using other, more expensive products may be able to save more by switching to using these national contracts.
We have completed all contract negotiations for this category and 228 surgical glove products are now listed on the Pharmaceutical Schedule. The agreements with EBOS, Mӧlnlycke and REM collectively offer DHBs savings of around $440,000 per annum.
The Request for Proposals for anaesthesia devices (small equipment and consumables) closed on 7 April 2017. We will be assessing the proposals and negotiating national contracts in the coming months.
DHBs are in the process of implementing the necessary changes to ensure the market share suppliers for six types of wound care products receive the agreed portion of the market from 1 July 2017.
As this is the first time market share agreements for medical devices have been implemented in DHB hospitals, we will be reviewing the process and asking for DHB input later in the year. This will help us to understand how we can better support DHBs for future similar activity.
PHARMAC will have a stand again at the NZ Wound Care Society Conference(external link), 18-20 May 2017 in Rotorua. If you are attending, make sure you stop by to have a chat.
There are two more forums coming up where we will be updating DHB staff on our medical devices work. We have held seven so far over March and April. The forums continue to be a great opportunity for us to update people on our work and to hear your feedback and answer your questions. The forums run between 12-1pm with a light lunch provided.
|Tuesday 9 May||Southern DHB||Dunedin Hospital|
|Thursday 11 May||Hawkes Bay DHB||Hastings Hospital|
PHARMAC’s work in hospital medical devices is focused on negotiating national contracts for the types of medical devices that DHB hospitals are currently purchasing. Some market share activity is underway with selected wound care ranges, and we are identifying other potential opportunities for market share activity.
- We are negotiating contracts with suppliers to set nationally consistent pricing on the types of products that DHBs are currently using.
- This stage offers some early savings and is critical to inform work ahead. So far DHBs are saving around $16.6 million per annum and may be able to make further savings by reviewing their product mix.
- The national contracts are non-exclusive so DHBs can continue to purchase other brands at their discretion. If they are buying the medical devices that PHARMAC has a contract for, they must purchase under the terms and conditions of the PHARMAC contract.
- 40,000 hospital medical devices (over six categories and 32 different suppliers) are listed on the Pharmaceutical Schedule.
Market share agreements
- These agreements guarantee suppliers a portion of the market, in return for quality products, at competitive pricing.
- DHBs that want to use the types of products under market share agreements must purchase the specified brands, with some allowance for discretionary purchasing.
- Six types of wound care products have these agreements in place. Watch our Chief Executive talk about these types of agreements.
You are welcome to contact us directly at any time. Email email@example.com or call 04 460 4990.
Last updated: 19 November 2018