The future of managing hospital medical devices

The Government has clarified responsibilities for the procurement of medical devices to create efficiencies and avoid duplication.

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New approach announced September 2025

Health NZ and Pharmac will each take responsibility for the procurement of medical devices that are most focused on their particular capabilities and expertise.

Joint Ministerial Letter of Expectations for medical device procurement (September 2025) [PDF 311 KB]

Pharmac worked together with Health NZ to identify which of the 55 categories of medical devices they should each be responsible for.

Pharmac will lead procurement for 27 categories, while Health NZ will lead 28. Pharmac will generally be the lead agency for devices that primarily have a direct therapeutic impact on patients, for example orthopaedic implants.

Health NZ will generally be the lead agency for devices that are less therapeutically intensive and require integration with infrastructure, for example, beds, imaging and diagnostics.

Health NZ will continue to manage the overall medical devices budget.

Pharmac will also focus on delivering high-quality, independent Health Technology Assessments to support access to new and innovative devices.

Health nz will manage devices with less therapeutic value, less clinical expertise needed, more integration needed. Pharmac will manage devices with more therapeutic, more clinical expertise needed and less integration.

Why is this happening?

It makes sense for Pharmac and Health NZ to be able to procure medical devices that are most focused on their particular capabilities and expertise. A clear split between the agencies will provide the transparency and certainty that suppliers have been asking for.

When will this happen?

We are still working through the detail for this transition with Health NZ. We will add more details as they are available.

What medical devices will Pharmac be responsible for?

Pharmac will generally be the lead agency for devices that have a direct therapeutic impact on patients and that need a high level of clinical input. For instance, this includes orthopaedic implants.

Now that the Government has clarified responsibilities for the procurement of medical devices, we are developing the next level of detail, including how this split may affect current contractual arrangements and commercial processes underway. This detail will be shared as soon as it is available.

Categories Pharmac will manage

Clinical Equipment
1	Surgical equipment	Cardiology equipment (inc defibs, ECG, echos and perfusion)
2	Surgical equipment	General and specialist surgical instrumentation, power tools,
3	Surgical equipment	Anaesthetic machines
4	Medical equipment	Ventilation and respiratory equipment
5	Medical equipment	Dental and oral health equipment
6	Medical equipment	Gastroenterology, endoscopy, lap towers and scopes
7	Medical equipment	ENT and ophthalmology equipment
8	Medical equipment	Infusion pumps, PCA pumps, syringe drivers
9	Medical equipment	Monitoring, electrophysiology and neurophysiology equipment
10	Medical equipment	Renal dialysis equipment
Clinical Consumables
11	Surgical Services consumables	Anaesthesia and respiratory consumables and resuscitation products
12	Surgical Services consumables	Customised and non customised procedure packs
13	Surgical Services consumables	General surgery/perioperative consumables (other)
14	Surgical Services consumables	Orthopaedic implants and cement
15	Surgical Services consumables	Other surgical implants and mesh
16	Surgical Services consumables	Surgical suction and chest drainage
17	Surgical Services consumables	Sutures and glues, closure devices, skin tissue and vessel stapler-sealants
18	Medical Services consumables	Audiology aids and new born hearing consumables, ophthalmology
19	Medical Services consumables	Dental and oral health supplies and implants
20	Medical Services consumables	Endomechanical, electrosurgical and laparoscopic devices
21	Medical Services consumables	IV equipment, consumables and IV fluids
22	Medical Services consumables	Renal fluids and dialysis supplies
23	Ward & General Ambulatory consumables	Medical, patient and treatment consumables inc orthotics (other)
24	Ward & General Ambulatory consumables	Urology, ostomy
25	Ward & General Ambulatory consumables	Women’s health and maternity, obstetrics and gynaecology
26	Ward & General Ambulatory consumables	Wound care consumables,( inc casting, NPWT consumables and rental, VTE prevention)
27	Imaging consumables	Cardiac and interventional cardiology and interventional radiology consumables (inc heart valves, ICD and pacemakers, stents, perfusion, grafts)

What Medical Devices will Health NZ be responsible for?

Health NZ will generally be the lead agency for devices that are less therapeutically intensive and require integration with infrastructure, for example, beds, imaging and diagnostics.

Categories Health NZ will manage

Clinical Equipment
1	Ward & General Ambulatory equipment	Beds, mattresses and patient transfer devices
2	Ward & General Ambulatory equipment	Rehabilitation equipment (inc hoists and bariatric)
3	Ward & General Ambulatory equipment	Medications equipment (medical refrigeration, robots and dispensing)
4	Surgical equipment	Sterilisation and decontamination equipment and servicing
5	Surgical equipment	Theatre equipment and servicing
6	Medical equipment	Incubators and infant warmers
7	Medical equipment	Lights, pendants and operating tables
8	Imaging equipment	Major imaging (CT, Spec CT, MRI, DSA, Cath Lab and Linac)
9	Imaging equipment	Minor imaging (XR, ultrasound, image intensifier, mammography, fluroscopy)
10	Imaging equipment	Ultrasounds
11	Laboratory Equipment	Diagnostic/labs equipment (inc POC testing)
12	Laboratory Equipment	Microscopes
13	Laboratory Equipment	Laboratory equipment, calibration and certification, maintenance, service and repair
Clinical Consumables
14	Surgical Services consumables	Drapes, gowns and surgical gloves
15	Surgical Services consumables	Sterile wraps and sterile services consumables
16	Ward & General Ambulatory consumables	Patient monitoring (inc pulse oximetry and ECG electrodes)
17	Ward & General Ambulatory consumables	Needles and syringes
18	Ward & General Ambulatory consumables	Sharps disposal containers
19	Clinical Consumables	Personal protective equipment (inc non sterile gloves, gowns, masks, eyewear)
20	Ward & General Ambulatory consumables	Point of care testing (inc thermometers and other diagnostic supplies)
21	Imaging consumables	Radiology consumables
22	Laboratory consumables	Biochemistry
23	Laboratory consumables	Diagnostic genetics
24	Laboratory consumables	Haematology
25	Laboratory consumables	Histology
26	Laboratory consumables	Reagents and solvents
27	Laboratory consumables	Virology and Immunology
28	Ward & General Ambulatory consumables	Continence

How Health Technology Assessments fit into this approach

Pharmac will deliver independent Health Technology Assessment advice to Health NZ.

Pharmac independently evaluates the clinical benefit and cost-effectiveness for a range of medical devices, particularly where these are highly technical. Pharmac assessments bring together clinical effectiveness, patient voice, cost utility, budget impact, implementation, commercial considerations and equity impacts.

This involves analysis and comparison of different technologies to inform Health NZ’s adoption of new devices and technologies and will eventually ensure that the most effective and efficient options are selected for use.

I have an existing contract with Pharmac, but my category is moving to Health NZ. What do I do?

We’re working closely with Health NZ to understand what the changes mean for current agreements and procurement processes already underway, so we can plan for any transition.

In the meantime, your current contracts with Pharmac remain in place, and we’ll keep you informed of any updates as the process moves forward.

What happens if I’m currently in a procurement process?

We understand that suppliers and stakeholders will have questions about how this change may affect current and future contracts. At this stage, any current agreements with Pharmac remain in effect and we encourage you to continue with business as usual.

We are working closely with Health NZ to understand the implications for individual agreements and procurement processes. We will be in touch with further information as soon as we are able.

If you have any questions or would like to discuss your specific circumstances, email devices@pharmac.govt.nz or your contract manager.