Device Advice – Issue 26

In brief

  • Evaluating responses to RFPs in a number of categories
  • Update on contracting due for completion
  • Update on consultations
  • Scoping started in 5 new categories

In this issue

70,000 line items, from 40 suppliers, worth $170 million of annual expenditure.

Our work to date

As of 1 February 2018, the Pharmaceutical Schedule includes over 70,000 line items from over 40 suppliers. These contracts cover approximately $160 – $170 million of annual expenditure.

Current activity

National contracting

  • Interventional radiology – we are evaluating proposals received in response to the RFP that closed in October 2017, with the aim of commencing contracting in early 2018.
  • Needles and syringes – the RFP closed in December and we’re currently evaluating the responses. This category covers DHB expenditure of approximately $15 million per annum.
  • Hand hygiene products – the scope of this RFP (which closed in December) considered proposals for non-surgical antimicrobial hand hygiene products that hold, or are significantly through the process of obtaining, consent to be distributed as a medicine in New Zealand. We’re currently evaluating the responses to this RFP. Hand hygiene products cover DHB expenditure of approximately $6 million per annum.
  • Respiratory equipment and consumables (including respiratory suction) – we’re currently evaluating responses to the RFP for this category and expect this to be completed by March 2018.
  • Anaesthesia small equipment and consumables devices – in January 2018, PHARMAC announced the approval of four agreements for listings on the Pharmaceutical Schedule from 1 February 2018. Contract negotiations are continuing with other suppliers and we intend to consult on additional proposed agreements over the next few months.

Market share procurement

  • Permanent coronary drug-eluting stents – following the release of the RFP in November 2017, we held an information meeting in Auckland with suppliers. The meeting provided suppliers with the opportunity to discuss the RFP and ask questions about the market share procurement process. The RFP closed in December 2017 and we’re currently evaluating responses. 

    Drug-eluting stents are the biggest single subcategory of devices in the interventional cardiology category by spend, at approximately $8 million per annum. A market share procurement approach to this category has the potential to produce significant savings for the sector. PHARMAC will be seeking clinical advice on proposals before making any recommendations to proceed.
  • Wound care market share – as part of the post-implementation review, further DHB surveys and interviews continue. These are being undertaken by an external research company, and we’ll be sharing the results of this evaluation later in the year.

Contracting due for completion

We’re aiming to complete contracting for the following categories by the end of March 2018:

  • VTE prevention
  • Medical thermometers
  • Orthopaedics
  • Negative pressure wound therapy
  • Single use instruments
  • Anaesthesia consumables and small equipment.

We estimate 20 to 30 further contracts will be entered into during that timeframe.

Recent consultations

The following consultations have taken place since our last Device Advice update:

Upcoming activity

We have started scoping the following categories, and will be developing our approach to these over the next few months:

  • Ostomy, continence and urology
  • Intravenous infusion and transfusion devices, including infusion pumps and dedicated consumables
  • Patient warming (heat and cold therapy)
  • Endomechanical/electrosurgical
  • CPAP/BiPAP.

Any RFP documentation will be listed on the PHARMAC website and on the New Zealand Government Electronic Tenders Service (GETS) website(external link). As GETS has limited options for capturing details within the RFP headline description, we advise suppliers to read the RFP details to confirm the scope of products we’re seeking to contract.

Keeping informed

As we continue to expand our devices work, our website will keep you up to date with what’s happening in each category.

You are also welcome to contact us directly at enquiry@pharmac.govt.nz or 04 460 4990.

You can find all our medical devices listed under Section H, Part III of the Pharmaceutical Schedule.

Feel free to circulate this newsletter to anyone you think might be interested.

Last updated: 12 December 2018