Decision to list urology, ostomy and continence products supplied by Coloplast Pty Ltd and Liberty Medical NZ Limited

25 October 2018

Hospital devices Decision

We are pleased to announce the approval of non-exclusive listing agreements with Coloplast Pty Ltd and Liberty Medical NZ Limited for the supply of urology, ostomy and continence products to DHBs.

In summary, this will result in:

Coloplast’s urology, ostomy and continence products being listed in Part III of Section H of the Pharmaceutical Schedule from 1 December 2018.
Liberty’s urology, ostomy and continence products being listed in Part III of Section H of the Pharmaceutical Schedule from 1 January 2019.
DHBs being able to continue to purchase other suppliers’ brands of urology, ostomy and continence products as the agreements are not for sole supply.

Any changes to the original proposals?

This decision was subject to the following consultation letters:

No changes were made to the original proposals as a result of consultation feedback.

Who we think will be most interested

Suppliers and Wholesalers
DHB Staff
- stoma nurses
- urology and continence clinicians
- clinical staff in a range of inpatient, outpatient and community settings where urology, ostomy and continence products are used
- procurement and supply chain personnel
Users of urology, ostomy and continence products provided by DHBs

Detail about this decision

In May 2018, PHARMAC issued a request for proposals (“RFP”) for the supply of urology, ostomy and continence products to DHBs.

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

After evaluating Coloplast’s and Liberty’s proposals, and consulting on the provisional agreements reached with them, PHARMAC has decided to list urology, ostomy and continence products in Part III of Section H of the Pharmaceutical Schedule from 1 December 2018 and 1 January 2019 for products supplied by Coloplast and Liberty respectively.

The brands included in the agreements are:

Coloplast

Continence

Peristeen
Conveen

Ostomy

Alterna
Brava
Coloplast
Easiflex
Fistula

Urology

Coloplast
Conveen
EasiCath
Foysil
Releen
Self-Cath

Liberty

Ostomy

Adapt
Moderma Flex CeraPlus
Nova Life 1
Compact
New Image
Nova Life 2
Dansac
New Image CeraPlus
Pouchskins
First Choice
New Image Flex Wear
Tre
GX
Nova 1
Tre-Seal
Hollister
Nova 2
Windless
Moderma Flex
Nova Life

Urology and Continence

Hollister

These agreements are the first to arise from the urology, ostomy and continence RFP.

The list of products will be available on PHARMAC’s website from 1 December 2018 for Coloplast’s products, and from 1 January 2019 for Liberty’s products, in both a PDF document and an Excel spreadsheet.

DHBs can continue to choose which urology, ostomy and continence products they purchase, including those from other suppliers. DHBs that purchase Coloplast’s products listed on the Pharmaceutical Schedule from 1 December 2018, or Liberty’s products listed on the Pharmaceutical Schedule from 1 January 2019, must do so under the terms and conditions, and at the prices, included in the agreements.

PHARMAC expects to reach agreements with a number of other suppliers over the coming months for the supply of urology, ostomy and continence products to DHBs.

Our response to what you told us

We appreciate the time people took to consider this consultation.

All consultation responses received by 9 October 2018 for Coloplast, and 17 October 2018 for Liberty, were considered in their entirety in making the decision to approve each agreement.

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

Theme	Comment
Coloplast agreement Not simultaneously evaluating and listing all suppliers’ urology, ostomy and continence products could give those suppliers with earlier listings an advantage.	PHARMAC received a large number of proposals in response to the urology, ostomy and continence RFP. It is not unusual for PHARMAC to prioritise the timing of contracting based on benefit to DHBs. PHARMAC’s approach to the evaluation of proposals is consistent with the evaluation framework set out in the RFP and all proposals will be evaluated. PHARMAC does not consider that an earlier listing date gives a supplier a significant commercial advantage as, under national contracting, DHBs can continue to purchase products from other suppliers.
Coloplast agreement A urology clinician asked about how rarely used products would be managed to minimise wastage through expired stock and suggested bulk purchasing for economy as a good area for PHARMAC to be involved in to ensure a standard range of products and a good price. A DHB procurement manager asked whether PHARMAC was considering standardising ostomy products, noting that it currently purchases nearly all its ostomy products from one supplier.	PHARMAC notes the benefits of standardising expressed in this feedback however, at this stage, PHARMAC is not considering standardisation of these products. Should PHARMAC consider this at some point in the future, PHARMAC would seek external clinical advice. PHARMAC agreements specify the shelf-life on delivery of products to DHBs to minimise wastage through stock expiring.
Coloplast agreement A stomal therapy nurse asked if ostomy supplies would be limited to Coloplast’s range, noting that not all products are suitable for all patients.	DHBs can continue to purchase products from other suppliers, as the Coloplast’s agreement is not for sole supply.
Coloplast agreement A DHB had a question about the financial impact analysis	PHARMAC provided clarification of the financial impact analysis directly to the DHB.
Liberty agreement A urology clinician asked if Liberty’s urology products would replace the urology products the DHB currently uses.	There is no requirement for DHBs to change to Liberty’s products as the agreement is not for sole supply.
Liberty and Coloplast agreements Feedback from the Ministry of Health that no technical or resource impacts are expected as a result of the proposals.	Noted.

Coloplast agreement

Not simultaneously evaluating and listing all suppliers’ urology, ostomy and continence products could give those suppliers with earlier listings an advantage.

PHARMAC received a large number of proposals in response to the urology, ostomy and continence RFP.

It is not unusual for PHARMAC to prioritise the timing of contracting based on benefit to DHBs.

PHARMAC’s approach to the evaluation of proposals is consistent with the evaluation framework set out in the RFP and all proposals will be evaluated.

PHARMAC does not consider that an earlier listing date gives a supplier a significant commercial advantage as, under national contracting, DHBs can continue to purchase products from other suppliers.

Coloplast agreement

A urology clinician asked about how rarely used products would be managed to minimise wastage through expired stock and suggested bulk purchasing for economy as a good area for PHARMAC to be involved in to ensure a standard range of products and a good price.

A DHB procurement manager asked whether PHARMAC was considering standardising ostomy products, noting that it currently purchases nearly all its ostomy products from one supplier.

PHARMAC notes the benefits of standardising expressed in this feedback however, at this stage, PHARMAC is not considering standardisation of these products. Should PHARMAC consider this at some point in the future, PHARMAC would seek external clinical advice.

PHARMAC agreements specify the shelf-life on delivery of products to DHBs to minimise wastage through stock expiring.

Coloplast agreement

A stomal therapy nurse asked if ostomy supplies would be limited to Coloplast’s range, noting that not all products are suitable for all patients.

DHBs can continue to purchase products from other suppliers, as the Coloplast’s agreement is not for sole supply.

Coloplast agreement

A DHB had a question about the financial impact analysis

PHARMAC provided clarification of the financial impact analysis directly to the DHB.

Liberty agreement

A urology clinician asked if Liberty’s urology products would replace the urology products the DHB currently uses.

There is no requirement for DHBs to change to Liberty’s products as the agreement is not for sole supply.

Liberty and Coloplast agreements

Feedback from the Ministry of Health that no technical or resource impacts are expected as a result of the proposals.

Noted.

Theme

Comment

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.