PHARMAC's bi-monthly newsletter about the management of hospital medical devices.
Issue 44 - June 2021
As of 1 June 2021, the Pharmaceutical Schedule includes over 139,000 contracted line items from 112 suppliers. These contracts cover approximately $401 million of annual DHB hospital expenditure on medical devices.
All contracted products are listed in the Addendum for Medical Devices in Section H, Part III of the Pharmaceutical Schedule.
New agreements with suppliers
The following agreements have been completed since 9 April 2021 (the previous issue of Device Advice).
We notify all new supplier agreements on our website in the section called Consultations and Decisions.
The following proposals have been issued for consultation since 12 February 2021 (the previous issue of Device Advice).
We list all new proposals on our website in the section called Consultations and Decisions.
Keep track with what’s happening in each category on our website.
Since September 2020, PHARMAC has released Registrations of Interest (“ROI”) for several categories where NZ Health Partnerships have run competitive processes. Contracting as a result of these processes is in progress and agreements will be notified over the coming months.
Contracting is in progress for the Laboratory Equipment and Consumables category resulting from the 2018 Request for Proposals (RFP). Agreements in this category will be consulted on throughout 2021.
Future Procurement Opportunities have been released for additional categories where PHARMAC intends to release similar ROIs in 2021.
Since the early stages of COVID-19, PHARMAC has been actively working with our contracted suppliers and wider industry groups to identify supply risks and impacts to the general supply chain. PHARMAC has provided direct support to several of our contracted suppliers; this support has included leveraging our networks to ease logistics issues through to temporary financial support for increased freight costs in material cases.
We expect to continue seeing some challenges in the general supply chain and with international manufacturing disruptions and will continue to manage this as appropriate. If you are experiencing any issues with the supply of PHARMAC contracted medical devices, please contact us at firstname.lastname@example.org.
Progressing our work
Developing our approach to managing devices has entered an important phase. This is all about working out the operational detail to support the broad framework we released in our last consultation, “Managing fairer access to hospital medical devices”. As part of this, we are starting to undertake more focused engagement with stakeholders.
Getting input from suppliers
As mentioned in the last issue of Device Advice, this month PHARMAC will attend the Medical Technology Association of New Zealand annual HealthTech conference.
This will give us an opportunity to tap the expertise of device suppliers, to help us develop the decision-making framework for future device funding proposals. At the conference, we will give participants an opportunity to take part in a mock decision-making exercise based on a number of potential device funding scenarios.
We will be testing our Factors for Consideration
As many readers will know, PHARMAC has a common set of considerations – known as the “Factors for Consideration” (FFC) – that we use to assess all medicines funding requests.
The FFC ensure we take into account a broad array of factors as part of the assessment process, including:
- the heath need that a funding proposal would meet
- the suitability of the proposed option for addressing that need
- the health benefits it will deliver
- the likely costs and/or savings associated with it.
The FFC also ensure we consider the potential impact of the proposal at not only the individual person level, but also family/whānau, the wider society and the health system.
After the Government decided to expand PHARMAC’s role into devices, it has always been intended that the FFC would underpin device-funding decisions. However, we have also acknowledged that medicines and devices are very different, and changes to our decision-making framework may be needed to ensure it is equally applicable to devices.
Other focused engagement coming up soon
Healthtech Week represents just one aspect of the focused engagement we’re now carrying out.
We are also currently finalising plans for engagement with a cross-section of DHB staff, to help us identify potential procurement approaches for clinical equipment. After this we’ll do further work with our stakeholders on the detail.
Future Procurement Opportunities replacing Annual Procurement Plan
In line with changes to reporting requirements from the New Zealand Government procurement In line with changes to reporting requirements from the New Zealand Government procurement branch of the Ministry of Business, Innovation and Employment PHARMAC will no longer produce an Annual Procurement Plan (APP). Instead, we intend to publish Future Procurement Opportunities (FPOs) for potential contract opportunities that the Government Procurement Rules apply to.
In line with changes to the Government Rules of Procurement, we will publish FPOs as they are identified on the Government Electronic Tenders Service (GETS). The GETS website provides a complete list under the FPOs section and if an FPO matches your ‘tender subscription preferences’, you will receive a notification in the daily mail run.
Feedback on our work, our website, or this newsletter is welcome:
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