Decision to list anaesthesia small equipment and consumables devices

What we are doing

PHARMAC is pleased to announce the approval of three individual listing agreements for anaesthesia small equipment and consumable devices.

The agreements cover a range of anaesthesia small equipment and consumable devices (“anaesthesia products”) supplied by:  

• MedXus Limited (“MedXus)
• REM SYSTEMS Limited (“REM”)
• Device Technologies New Zealand Limited (“Device Technologies”)

In summary, this will result in:

• 462 Anaesthesia Products being listed in Part III of Section H of the Pharmaceutical Schedule from 1 April 2018.
• National DHB savings estimated at $66,00 per annum on the purchase of these product based on current usage levels. The following table provides a summary of the listings and savings:

*assumes no change to current usage levels or product mix

These Agreements would supersede any existing DHB contracts with these suppliers for the devices listed in the Schedule One of these Agreements. 

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

Any changes to the original proposals?

This decision was subject to consultation. The consultation letter for the Device Technology proposal was circulated on 29 November 2017 and the consultation letter for the MedXus and REM proposals was circulated on 18 January 2018.

In response to consultation feedback received, PHARMAC and Device Technologies renegotiated specific terms and conditions of the proposed agreement as a result of feedback from DHBs. 

No changes were made to the MedXus or REM listing agreements as a result of consultation feedback.

Who we think will be most interested

• Suppliers and Wholesalers
• DHB Staff
  • Clinical Engineers
  • Anaesthetists
  • Anaesthetic Technicians
  • Clinical staff involved with airway management and emergency respiratory resuscitation
  • Procurement Officers 

Details about this decision

In March 2017 PHARMAC issued a Request for Proposals for Anaesthesia Products. The RFP was for non-exclusive national agreements for listing on the Pharmaceutical Schedule.

The scope of the Anaesthesia Products category was defined as:

• Airway visualisation devices and associated consumables
• Stand-alone depth of anaesthesia monitoring systems and associated consumables
• Consumable medical devices used for the purpose of:
  • Acute airway management
  • Anaesthesia gas delivery

Consumable medical devices included both single use items and defined-life multiple use items.

PHARMAC has been working with suppliers to seek provisional agreements.

DHB hospitals would continue to be able to choose which Anaesthesia Products they purchase, however would need to use these agreements should they choose to purchase MedXus, REM or Device Technologies devices listed in the Pharmaceutical Schedule, effective from 1 April 2018.  

All of these companies have some products that are new to New Zealand DHBs and the Agreements would provide an increased range of Anaesthesia Products from which clinicians could choose.

Pricing for Anaesthesia Products, subject to any prior termination of the Agreements, would not be increased without prior consultation and approval by PHARMAC.

MedXus, REM and Device Technologies will provide training and education services that will be tailored to suit the needs of individual DHBs in formats and at times as required by DHBs.

We intend to consult on proposed agreements for Anaesthesia Products with other suppliers over the next few months. 

Our response to what you told us

We are really grateful for the time people took to respond to this consultation. All consultation responses received were considered in their entirety in making a decision to approve these three provisional agreements. 

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

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.