Agreement for the supply of Orthopaedic implants and associated products by Ortho Medics Limited

Hospital devices

Decision

We are pleased to announce the approval of a listing agreement with Ortho Medics Limited (“Ortho Medics”) for the supply of orthopaedic implants and associated products to DHBs.

What we're doing

We are pleased to announce the approval of a listing agreement with Ortho Medics Limited (“Ortho Medics”) for the supply of orthopaedic implants and associated products to DHBs.

In summary, this will result in:

  • Pharmaceutical Schedule listings for the following brands of orthopaedic implants and associated products being supplied by Ortho Medics under a national agreement that all DHBs may purchase under (“Agreement”).
    • Acu-Loc 2
    • Acumed
    • Acutrak 2
    • Centre Drive
    • KLS Martin
    • MaxDrive
    • Motec
    • Polley
    • RibLoc
    • Rotterdam
    • Sonic Weld Rx
    • Tension Band
    • Pin
    • Wood Zurich
    • Zurich II
  • DHBs continuing to be able to purchase other suppliers’ brands of orthopaedic implants and associated products, as the Agreement is not for sole supply.
  • The orthopaedic implants and associated products being available for DHBs to purchase at the PHARMAC negotiated prices, and terms and conditions from 1 March 2018.
  • Ortho Medics providing training and education services that will be tailored to suit the needs of individual DHBs in formats and at times as required by DHBs.
  • Pricing for products in the Agreement, subject to any prior termination of the Agreement, not being increased before 1 March 2021.

Any changes to the original proposal?

This agreement was the subject of a consultation letter dated 5 December 2017, and is principally the same with some minor changes to commercial terms subsequent to further negotiations in consultation with procurement personnel at the DHBs. 

Who we think will be most interested

  • Suppliers and Wholesalers
  • DHB Staff
    • Orthopaedic Surgeons
    • Theatre Staff
    • Sterile Services Personnel
    • Procurement Officers 

Detail about this decision

In April 2016, PHARMAC issued a Request for Proposals (RFP) for orthopaedic implant products. The RFP requested proposals for non-exclusive national agreements for listing on the Pharmaceutical Schedule.

After completing the RFP evaluation process, and consulting on the provisional Agreement reached with Ortho Medics, PHARMAC has decided to list Ortho Medics’ range of orthopaedic implants and associated products in Part III of Section H of the Pharmaceutical Schedule from 1 March 2018.  

The range of orthopaedic implants, and associated products used during implantation, supplied by Ortho Medics, are primarily for use in trauma and distal joint procedures.

The list of products will be available on PHARMAC's website from 1 March 2018, in both a PDF document and an Excel spreadsheet.

DHBs that purchase the Ortho Medics range of orthopaedic implants and associated products must do so under the terms and conditions, and at the prices, included in the Agreement, from 1 March 2018.

DHBs can continue to choose which orthopaedic implants and associated products they purchase.

The Agreement includes terms and conditions for training and education services to be provided by Ortho Medics to DHB personnel on the appropriate use of its orthopaedic implants and associated products, which is to be provided at times as agreed with individual DHBs. 

The Ortho Medics orthopaedic implants and associated products contract is one of a number of contracts PHARMAC has listed, in this category, on the Pharmaceutical Schedule.  Further consultations in this category are expected over the next few months. 

Our response to what you told us

We appreciate the time people took to respond to this consultation.

All consultation responses received by 19 January 2018 were considered in their entirety in making a decision to approve Ortho Medics’ provisional Agreement. 

A summary of the main themes raised in feedback and our responses to the feedback received are set out below: 

   

Theme

Comment

Price and impact analysis inquiries

 Feedback was provided to those enquiring, and as a result some minor changes were made to the agreement.

No technical or resource impacts anticipated

 Noted 

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