Agreement with ArjoHuntleigh Limited for the supply of medical devices used in the prevention of venous thromboembolism (VTE)

Hospital devices

Decision

PHARMAC is pleased to announce the approval of an agreement with ArjoHuntleigh Limited (“ArjoHuntleigh”) for the supply of Medical devices used in the Prevention of Venous Thromboembolism (“VTE Prevention devices”).

This was the subject of a consultation letter dated 22 May 2017.

In summary, the effect of the decision is that:

  • A range of 37 VTE Prevention devices will be listed in Section H, Part III, (‘Optional Pharmaceuticals’) of the Pharmaceutical Schedule from 1 July 2017.
  • DHB hospitals can purchase these devices from ArjoHuntleigh under the national agreement.
  • For the DHBs that currently use these devices the agreement will deliver savings of approximately $380,000 per annum nationally, based on current usage.

Details of the decision

In May 2016 PHARMAC issued a request for proposals (RFP) for VTE Prevention devices, for non-exclusive national agreements, to be listed on the Pharmaceutical Schedule and ArjoHuntleigh responded to this request.

The purpose of the RFP was to secure national contracts for DHB hospitals to purchase from, and to provide savings opportunities for the DHBs.

PHARMAC has entered into an agreement with ArjoHuntleigh for the supply of a selection of VTE Prevention devices 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 2017.

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

There are estimated savings to DHBs that currently use these products of approximately $380,000 per annum nationally, based on current usage.

The agreement is not exclusive. DHBs can continue to purchase other brands of VTE Prevention devices at their discretion.

The agreement covers provisions for servicing and maintenance of the equipment, and training and education to be available to meet DHBs requirements.

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 2017 were considered in their entirety in making a decision on the proposed changes. Most responses were supportive of the proposal. The following issues were raised in relation to specific aspects of the proposal:

Theme

Comment

Feedback was supportive of the Agreement as it is in line with current DHB-Supplier practice, including the pricing structures, and service and maintenance provisions.

PHARMAC noted.

Feedback on the transition process and the DHB’s ability to change to a new supplier.

PHARMAC noted the concern, and will assist the DHBs in the change management, with consideration of the transition process.

Detailed feedback was received on specific provisions, quality standards, servicing obligations, special warranties, maintenance services and education, training and in-servicing arrangements.

PHARMAC noted all the suggestions.

 

A number of suggestions to improve the terms and conditions of these ‘special requirements’ were proposed including equipment fleet management, interactions and roles of DHB clinical engineering and Supplier clinical engineering, and managing the requirements of AS/NZS 3551 standard.

PHARMAC will consider these suggestions, work with ArjoHuntleigh and DHBs to provide clarity on the intent of the terms and conditions, clarity on the roles of the parties, and work to mitigate the issues detailed in the feedback.

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.