Agreements for the supply of orthopaedic implants and associated products

These agreements were the subject of consultations letters dated 18 August and 8 September 2017, respectively.

In summary, the effect of the decisions is that:

• 6520 orthopaedic implants and associated products will be listed in Section H, Part III (‘Optional Pharmaceuticals’) of the Pharmaceutical Schedule on 1 November 2017.
• The Medtronic agreement is cost neutral and the Lima agreement has a national cost increase of $14,000 per annum.
• DHBs would continue to be able to choose which medical devices they purchase, however would need to use these agreements should they choose Medtronic or Lima products listed in the Pharmaceutical Schedule.

Details of the decision

In April 2016 PHARMAC released a request for proposal (“RFP”) for orthopaedic implants and associated products for non-exclusive national Pharmaceutical Schedule listing agreements; for medical devices.  The purpose of the RFP was to secure national contracts for DHB hospitals to purchase from.

Both Medtronic’s and Lima’s proposals met the RFP requirements and PHARMAC has entered into agreements with them for the supply their orthopaedic implants and associated products to be listed on the Pharmaceutical Schedule. This means that DHB hospitals that purchase these products must do so under the PHARMAC agreement at the listed pricing from 1 November 2016.

The list of products will be available on PHARMAC’s website in both a PDF document. 

The agreements are not exclusive. DHBs can continue to purchase other brands of orthopaedic implants and associated products.

Educational services will be provided by Medtronic and Lima to DHB personnel on the appropriate use of their orthopaedic implants and associated products and this will be arranged in formats and at times agreed with individual DHBs.