Proposal to list medical devices supplied by Cardinal Health Australia 503 Pty Ltd

Hospital devices Consultation Closed

Te Pātaka Whaioranga - Pharmac is seeking feedback on a proposal to list a range of medical devices in Part III of Section H of the Pharmaceutical Schedule.

What we’re proposing

Pharmac is seeking feedback on a proposal to list a range medical devices supplied by Cardinal Health Australia 503 Pty Ltd (“Cardinal”)  in Part III of Section H of the Pharmaceutical Schedule from 1 December 2023 in the following category:

Consultation closes at 4pm Tuesday 31 October 2023 and feedback can be emailed to tyson.edwards@pharmac.govt.nz.

What would the effect be?

From 1 December 2023, feeding devices supplied by Cardinal would be listed under a proposed national agreement for all Te Whatu Ora hospitals to purchase under, subject to consultation and approval by Pharmac’s Board or delegate (“Agreement”).

The Agreement would not be for sole supply and Te Whatu Ora hospitals could continue to purchase other suppliers’ brands of feeding devices.

The Agreement would supersede any existing Te Whatu Ora contracts with Cardinal for the products included in the Agreement. Any medical devices listed in the Agreement and purchased by Te Whatu Ora hospitals would be in accordance with the terms and conditions, including price, stated in the Agreement effective from the date of listing on the Pharmaceutical Schedule.

Pricing for the medical devices in the Agreement, subject to any prior termination of the Agreement, would not be increased without prior consultation and approval by Pharmac.

Who we think will be interested

  • DHB clinical staff in a range of different clinical settings including but not limited to:
    • Clinical engineers and maintenance services
    • Dietitians
    • Gastroenterologists
    • Geriatricians
    • ICU, emergency, and critical care staff
    • Nurses (both inpatient and community based)
    • Paediatricians
    • Procurement Officers and supply chain personnel
    • Surgeons
  • Suppliers and wholesalers

About the medical devices

Feeding devices

Feeding devices are medical devices used to deliver nutrition and hydration into the body through the gastrointestinal tract (enteral nutrition). Devices that supply nutrition via the circulatory system (parenteral nutrition) are contracted separately under the Infusion Devices category.

Providing nutrition to patients who cannot consume adequate food and/or fluids orally is important to optimise healing, reduce recovery times, and lower complication rates. Feeding devices are used by patients with a wide variety of clinical conditions and across both acute and community-based settings.

Why we’re proposing this

In 2018 Pharmac issued a Request for Proposals ("RFP") for the supply of feeding devices and/or special foods delivered enterally or orally.

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

Pharmac has been working with suppliers who responded to the RFP, and were successful in being progressed to contract negotiation, to seek provisional agreements. This proposal is the latest to arise from this process and we expect to consult on further provisional agreements with suppliers of feeding devices.

Details about our proposal

The proposal would result in listing 232 items supplied by Cardinal from the brands:

  • Argyle
  • Cardinal Health
  • Kangaroo
  • Medtronic
  • Monoject

Further information, including pricing and contractual details, has been provided to Te Whatu Ora Hospital Procurement personnel. Clinicians interested in further detail on what this change means for their Te Whatu Ora Hospitals should engage with their Procurement teams.

To provide feedback

Send us an email: tyson.edwards@pharmac.govt.nz by 4pm 31 October 2023.

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.

Your feedback may be shared

Feedback we receive is subject to the Official Information Act 1982 (OIA). Please be aware that we may need to share your feedback, including your identity, in response to an OIA request. This applies to anyone providing feedback, whether they are providing feedback themselves or for an organisation, in a personal or professional capacity.

We can only keep feedback confidential as allowed under the OIA and other related laws. If you want any part of your feedback treated as confidential, you need to tell us. Please let us know if you want to keep part of your feedback confidential, and why. Is it commercially sensitive, confidential or proprietary, or personal information? Clearly state this and tell us which parts of your feedback you want to keep confidential for these reasons. We will consider your request under our OIA requirements.