Decision to list negative pressure wound therapy products and iodosorb wound care ointment supplied by Smith & Nephew Limited

Hospital devices

Decision

We are pleased to announce the approval of a listing agreement with Smith & Nephew Limited (“Smith & Nephew”) the supply of Negative Pressure Wound Therapy Equipment and Consumables (“NPWT Products”) and iodosorb wound care ointment to DHBs.

What we are doing

We are pleased to announce the approval of a listing agreement with Smith & Nephew Limited (“Smith & Nephew”) the supply of negative pressure wound therapy equipment and consumables (“NPWT Products”) and iodosorb wound care ointment to DHBs.

In summary, this will result in:

  • Smith & Nephew’s NPWT Products being listing on the Pharmaceutical Schedule from 1 July 2018 under a national agreement that all DHBs may purchase, rent, lease or lease to own under the Agreement (“Agreement”).
  • DHBs being able to continue purchasing other supplier’s brands of NPWT Products as the Agreement is not for sole supply.
  • Iodosorb ointment 10 g being added to Smith & Nephew’s national Woundcare listing agreement, that has been incorporated into the NPWT Agreement.

Any changes to the original proposal?

This decision was subject to a consultation letter dated 3 May 2018.

The listing Agreement was amended as the result of consultation feedback to further detail the maintenance terms and conditions.  

Who we think will be most interested

  • Suppliers and Wholesalers
  • DHB Staff
    • Wound care Clinicians
    • Community Nursing Services
    • Clinical Engineers
    • Procurement Officers

Detail about this decision

NPWT

In June 2017 PHARMAC issued a request for proposals (“RFP”) for NPWT 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 Smith & Nephew, PHARMAC has decided to list Smith & Nephew’s range of NPWT Products in Part III of Section H of the Pharmaceutical Schedule from 1 July 2018. This Agreement is the last to arise from the NPWT RFP process.

Smith & Nephew’s range of NPWT Products includes reusable NPWT units, disposable NPWT units, and associated consumables.

The reusable NPWT units included in the Agreement are Renasys Touch and Renasys Go.  Both reusable NPWT units will be available under the following procurement options:

  • Outright purchase

  • Daily rental (supplier managed)

  • Daily rental (DHB managed)

  • Monthly rental

  • Long term lease (12, 24 or 36 months)

  • Lease to own (12, 24 or 36 months)

Brands of NPWT consumables (including disposable NPWT units) included in the Agreement are Renasys and PICO.

DHBs can continue to choose which NPWT Products they procure.

The Agreement includes terms for training and education services to be provided by Smith & Nephew to DHB personnel on appropriate use of its NPWT Products, which is to be provided at times as agreed with individual DHBs.

The Agreement sets out respective responsibilities for maintenance and management of equipment under the various procurement options.

Iodosorb ointment

Iodosorb sheet dressings and ointment were included in Smith & Nephew’s original Woundcare proposal.  Iodosorb sheet dressings were included in the resulting Woundcare agreement however the Iodosorb 10 g ointment was not, as PHARMAC needed to confirm which part of the Pharmaceutical Schedule this type of product would be included in.  PHARMAC subsequently confirmed that it would be appropriate to consider Iodosorb ointment 10 g for listing in Part III of Section H of the Pharmaceutical Schedule.

Following consultation on a provisional agreement with Smith & Nephew, PHARMAC has decided to list Iodosorb ointment 10 g in Part III of Section H of the Pharmaceutical Schedule.   

Listing

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

DHBs that procure Smith & Nephew’s NPWT Products and Iodosorb ointment 10 g must do so under the terms and conditions, and at the prices, included in the Agreement, from 1 July 2018.

Our response to what you told us

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

All consultation responses received by 24 May 2018 were considered in their entirety in making a decision to approve Smith & Nephew’s Agreement, including the amendment made as a result of consultation feedback.

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

Theme

Comment

Supportive of Iodosorb ointment being included in the Woundcare category and request for information regarding which DHB department it should be ordered through.

Support noted.

It is up to DHBs to determine which of their departments order the product.

Concern that a spare parts list and pricing would not be included in the Pharmaceutical Schedule, and request for clarification on maintenance terms and conditions.

PHARMAC has amended the maintenance terms and conditions in the Agreement and these will be provided to DHBs.

The amendment does not include the listing of spare parts on the Pharmaceutical Schedule.

Feedback that no technical or resource impacts are expected as a result of the proposal.

Noted.

Request for clarification of the lease to own procurement option for reusable NPWT units, noting that this could be a finance lease that requires Treasury approval.

The details of the proposed lease-to-own procurement option are confidential however PHARMAC notes that DHBs are permitted to enter into both operating leases and finance leases with suppliers of medical devices.

DHBs are permitted to enter into finance leases in accordance with a Notice of Approval issued by the Ministers of Finance and Health dated 21 July 2005.(external link) 

The Notice sets out the conditions that DHBs must comply with when relying on the Approval.

Provision of information about current arrangements and practices, and future requirements.

PHARMAC has contacted the DHB to discuss details of the Agreement in relation to its specific requirements.

 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.