Proposal to list single use instruments

Hospital devices

Consultation Closed

PHARMAC is seeking feedback on a proposal to list ranges of single use instruments on Section H Part III of the Pharmaceutical Schedule from 1 December 2017 through provisional agreements with the following suppliers:

  • Amtech Medical Ltd
  • Defries Industries New Zealand Limited
  • Hallmark Surgical Ltd

This proposal does not require DHB hospitals to use single use instruments rather than reusable instruments.

Consultation closes at 5pm on Monday, 6 November 2017 and feedback can be emailed to procurement@pharmac.govt.nz.

What would the effect be?

These PHARMAC Agreements would supersede any existing DHB contracts with these suppliers for the devices listed in the individual Agreements.

The Agreements provide national consistency for these devices as the Price and Terms & Conditions stated in the Agreement apply to all DHB purchases from the date of listing on the Pharmaceutical Schedule.

The agreements require suppliers to hold a minimum stock level, providing DHBs with security of supply. The financial impact of these agreements on DHBs is a national cost increase of $1000 based on current usage levels.

These agreements are not sole supply agreements, and medical devices not listed on the Pharmaceutical Schedule may still be purchased by DHBs, and DHBs would be under no obligation to purchase devices from these suppliers.

DHBs would have access to educational services which would be tailored to suit the needs of the individual DHB Hospitals.

Who we think will be interested

  • DHB staff
  • Medical device suppliers

About single use instruments

Single use instruments are designed to be used once and then disposed of or destroyed - these are also known as disposable instruments. Some single use instruments may be used in many hospital settings such as operating theatre, emergency departments, wards and clinics.

While volumes of single use instruments are growing, usage varies in each hospital with many using a combination of single use and reusable instruments.

PHARMAC has not undertaken any work to compare the use or cost effectiveness of single use instruments with reusable instruments, and this proposal does not require hospitals to switch from reusable instruments.

Why we’re proposing this

In 2016, PHARMAC released a Request for Proposals for single use instruments. We have been working with suppliers in order to seek provisional agreements, and these three agreements are the first to arise from this process.

We expect to consult on further provisional agreements, with other suppliers, over the next few months.

Details about our proposal

PHARMAC has entered into individual provisional agreements with three suppliers for their ranges of single use instruments.

A full list of the products has not been included in this consultation for brevity, however we are making it available along with pricing information to appropriate DHB personnel.

The following information provides a summary of the proposed agreements:

Supplier Brands Number of products Product ranges Impact on DHBs*
Amtech Medical Ltd Amtech 23 Scissors, Forceps, Needle holders, Probe, Tubing clamp, Instrument kits None (Maintains current pricing)
Defries Industries New Zealand Ltd Defries 39 Scissors, Forceps, Needle holders, Dilator, Scalpel, Specula, Tubing clamp, Staple remover, Instrument kits $1000 cost across all DHB Hospitals
Hallmark Surgical Ltd Solo Sterling 46 Scissors, Forceps, Dilator, Amino hook, Biopsy punches, Uterine sounds, Uterine manipulators, Retractors, Specula / proctoscopes None (Maintains current pricing)
*based on existing volumes

To provide feedback

Send us an email: procurement@pharmac.govt.nz by 5pm, 6 November 2017.

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.