Proposal to list haemodialysis equipment and products supplied by Baxter Healthcare Limited

Hospital devices

Consultation Closed

PHARMAC is seeking feedback on a proposal to list a range of haemodialysis equipment and products in Part III of Section H of the Pharmaceutical Schedule from 1 May 2020, through a provisional agreement with Baxter Healthcare Limited.

Consultation closes at 4pm Wednesday, 25 March 2020 and feedback can be emailed to terry.odonnell@pharmac.govt.nz.

What would the effect be?

From 1 May 2020, Baxter’s range of haemodialysis equipment and products would be listed under the proposed national agreement (“Agreement”) that all DHBs may purchase under, subject to consultation and approval by PHARMAC’s Board or delegate.

The Agreement would not be for sole supply, with DHBs continuing to be able to purchase other suppliers’ brands of haemodialysis equipment and products.

The Agreement would supersede any existing DHB contract with the supplier for the devices listed in the Agreement, unless otherwise referenced in the Agreement. Any device listed in a PHARMAC Agreement and purchased by a DHB would be at the price, terms and conditions stated in the Agreement, effective from the date of listing on the Pharmaceutical Schedule.

PHARMAC estimates that the Baxter Agreement could provide cost savings for DHBs based on current usage though this is hard to quantify due to the varied nature of current Price-per-Treatment arrangements.

Who we think will be interested

  • DHB staff
    • Renal dialysis staff
    • Procurement officers
  • Suppliers and wholesalers

About haemodialysis products

Haemodialysis is used to treat renal failure, both acute and chronic. The leading cause of renal failure is diabetes. Patients require treatments to be performed on average three times per week with each session lasting on average four hours. Most treatment is provided in a DHB Hospital or DHB satellite centre, though some patients self-administer using equipment installed in their home.

Acute dialysis may be required for patients in intensive care who have undergone significant trauma or illness. Acute treatment may result in the patient’s full recovery or may lead to long term chronic dialysis.

Chronic haemodialysis is usually required until either the patient changes to peritoneal dialysis, receives a kidney transplant or no longer gains benefit from treatment and enters palliative care.

Why we’re proposing this

In February 2018, PHARMAC issued a  Request for Proposal ("RFP") for the supply of haemodialysis equipment and products

The RFP was for non-exclusive national agreements for listing on the Pharmaceutical Schedule.

PHARMAC has been working with suppliers in order to seek provisional agreements and this is the third proposal to arise from that process. We intend to consult on proposed agreements with other suppliers over the next few months.

Details about our proposal

PHARMAC has entered into a provisional Agreement with Baxter for the supply of a range of haemodialysis related equipment, products and support services. This includes haemodialysis machines and associated consumables, maintenance and service options (including all spare parts for the equipment), home dialysis support services and Price-per-Treatment (PPT) options as part of lease arrangements for capital expenditure. The PPT payment option is calculated using a specially designed tool that enables DHBs to select those components most appropriate to their service. This agreement also covers the provision of acute dialysis equipment and products used in Intensive Care Units for continuous renal replacement therapy.

We are making the full product list, pricing options and PPT calculator tool available to Procurement Departments at DHBs.

To provide feedback

Send us an email: terry.odonnell@pharmac.govt.nz by Wednesday 25 March 2020.

All feedback received before the closing date will be considered by PHARMAC’s Board (or its delegate) prior to making a decision on this proposal.

Feedback we receive is subject to the Official Information Act 1982 (OIA) and we will consider any request to have information withheld in accordance with our obligations under the OIA. Anyone providing feedback, whether on their own account or on behalf of an organisation, and whether in a personal or professional capacity, should be aware that the content of their feedback and their identity may need to be disclosed in response to an OIA request.

We are not able to treat any part of your feedback as confidential unless you specifically request that we do, and then only to the extent permissible under the OIA and other relevant laws and requirements. If you would like us to withhold any commercially sensitive, confidential proprietary, or personal information included in your submission, please clearly state this in your submission and identify the relevant sections of your submission that you would like it withheld. PHARMAC will give due consideration to any such request.