Agreements with Halyard Australia Pty Limited, BSN Medical Limited and REM SYSTEMS Limited for the supply of sterilisation packaging products and associated consumables

Hospital devices

Decision

PHARMAC is pleased to announce the approval of individual agreements with Halyard Australia Pty Limited (“Halyard”), BSN Medical Limited (“BSN”) and REM SYSTEMS Limited (“REM SYSTEMS”) for the supply of sterilisation packaging products and associated consumables.

These were the subject of a consultation letter dated 16 May 2016 which can be found on PHARMAC’s website.

In summary, the effect of the decision is that:

  • A range of 105 products will be listed in Section H, Part III, (‘Optional Pharmaceuticals’) of the Pharmaceutical Schedule from 1 July 2016.
    • Halyard: 32 products – sterilisation wrap, transport trays and tray liners
    • BSN: 27 products – sterilisation wrap, transport trays and tray liners
    • REM SYSTEMS: 46 products - sterilisation wrap, transport trays and tray liners
    • DHB hospitals can purchase these items either directly from Halyard, BSN or REM SYSTEMS or through a designated third party logistics provider under the national agreement.

Details of the decision

Following a two stage process for national contracting, an Expression of Interest (EOI) issued in July 2015 and a closed Request for Proposals (RFP) in October 2015, PHARMAC has entered into individual agreements with Halyard, BSN and REM SYSTEMS for the supply of a selection of sterilisation packaging products and associated consumables to be listed on the Pharmaceutical Schedule. This means that DHB hospitals that purchase these products must do so under the national agreement at the new pricing from 1 July 2016.

The list of products will be available on PHARMAC’s website in both a PDF document and a series of Excel spreadsheets as of 1 July 2016.

Halyard is an incumbent supplier of sterilisation packaging products and associated consumables to DHBs. The Halyard products are currently purchased by all DHBs. The BSN and REM SYSTEMS products are new to the DHB market.

The Halyard proposal offers national savings to DHBs of $914,000 per annum, based on current usage of products. National savings of a similar magnitude would be realised if DHBs choose to take up the new BSN and/or REM SYSTEMS products.

These agreements are not exclusive. DHBs can continue to purchase other brands of sterilisation packaging products and associated consumables at their discretion.

Educational services will be provided by Halyard, BSN and REM SYSTEMS to DHB personnel on the appropriate use of their sterilisation packaging products and associated consumables and this will be arranged in a format and at times agreed with individual DHBs.

Feedback received

PHARMAC appreciates all of the feedback that it has received and acknowledges the time people took to respond. All consultation responses received by 7 June 2016 were considered in their entirety in making a decision on the proposed changes. No concerns were raised regarding the proposals.

More information

If you have any questions about this decision you can email PHARMAC at enquiry@pharmac.govt.nz or call our toll free number (9 am to 5 pm, Monday to Friday) on 0800 66 00 50.