Decision to list urology, ostomy and continence products supplied by Universal Specialities Ltd and Convatec (New Zealand) Ltd

27 September 2018

Hospital devices Decision

We are pleased to announce the approve of non-exclusive listing agreements with Universal Specialities Limited and Convatec (New Zealand) Limited for the supply of urology, ostomy and continence products to DHBs.

In summary, this will result in:

USL Medical’s continence products being listed in Part III of Section H of the Pharmaceutical Schedule from 1 November 2018.
Convatec’s urology, ostomy and continence products being listed in Part III of Section H of the Pharmaceutical Schedule from 1 November 2018.
Annual savings of approximately $790,000.
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:

Convatec’s listing agreement was amended as a result of consultation feedback, to remove a range of products that have recently been discontinued.

Who we think will be most interested

Suppliers and Wholesalers
DHB Staff
- stoma nurses
- urology 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 USL Medical and Convatec’s proposals, and consulting on the provisional agreements reached with them, PHARMAC has decided to list USL Medical’s range of continence products, and Convatec’s range of urology, ostomy and continence products in Part III of Section H of the Pharmaceutical Schedule from 1 November 2018.

The brands included in the agreements are:

USL Medical

Continence

Molicare
Molimed
Molinea
Comfort Shield
Dignity
USL Underpants
Conni
Huggies
D Brief
MIP

Convatec

Ostomy

Stomahesive
Natura, Natura +
Esteem, Esteem +, Esteem Synergy, Esteem Synergy +
StomaDress
ConvaTec
Sur-Fit Plus, Sur-Fit Autolock
ActiveLife
Diamonds
Orabase

Continence

Flexi-Seal
Unomedical
Flexi-Seal SIGNAL
Flexi-Seal Protect

Urology

Unomedical

These agreements are the first to arise from the urology, ostomy and continence RFP and are expected to result in an annual saving for DHBs of approximately $790,000.

The list of products will be available on PHARMAC’s website from 1 November 2018, 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 USL Medical and Convatec products that are listed on the Pharmaceutical Schedule must do so under the terms and conditions, and at the prices, included in the agreements, from 1 November 2018.

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 13 September 2018 for USL Medical and 18 September for Convatec, were considered in their entirety in making the decision to approve each agreement, including the amendment to Convatec’s agreement 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
USL Medical and Convatec agreements Feedback that no technical or resource impacts are expected as a result of the proposals.	Noted.
Convatec agreement Request from a urology clinician for information about a specific brand of urology products, and current market share.	PHARMAC notes that DHBs are not required to purchase any of the products listed as a result of the urology, ostomy and continence RFP issued in May 2018. All agreements arising from this RFP are non-exclusive with no market share commitment required to access the listed price.
Convatec agreement Request from a stoma nurse for clarification on whether other suppliers’ proposals would be accepted if there is no negative feedback. Advised that a range of ostomy products included in the consultation has been discontinued.	PHARMAC expects to reach agreements with a number of suppliers for urology, ostomy and continence products. PHARMAC will evaluate all proposals in accordance with the evaluation framework set out in the RFP. Any provisional agreements arising from proposals progressed to the contracting phase will be consulted on. Consultation feedback will be considered in its entirety before PHARMAC makes a decision regarding a proposal. PHARMAC notes that DHBs can continue to purchase products from other suppliers. 16 recently discontinued ostomy products have been removed from Convatec’s agreement as a result of this consultation feedback.
Convatec agreement A DHB procurement manager requested clarification about the supply of specific ranges of proposed products.	PHARMAC has clarified with Convatec and responded directly to the procurement manager.
USL Medical agreement Asked whether a private organisation contracted to provide services for DHB patients is a party to PHARMAC’s agreement.	PHARMAC notes that, while private organisations cannot be party to PHARMAC agreements, suppliers may choose to pass on the PHARMAC pricing to DHB contracted organisations.
USL Medical and Convatec agreements Not simultaneously evaluating and listing all suppliers’ urology, ostomy and continence products could give those suppliers with earlier listings a significant commercial 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.

USL Medical and Convatec agreements

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

Noted.

Convatec agreement

Request from a urology clinician for information about a specific brand of urology products, and current market share.

PHARMAC notes that DHBs are not required to purchase any of the products listed as a result of the urology, ostomy and continence RFP issued in May 2018. All agreements arising from this RFP are non-exclusive with no market share commitment required to access the listed price.

Convatec agreement

Request from a stoma nurse for clarification on whether other suppliers’ proposals would be accepted if there is no negative feedback.

Advised that a range of ostomy products included in the consultation has been discontinued.

PHARMAC expects to reach agreements with a number of suppliers for urology, ostomy and continence products.

PHARMAC will evaluate all proposals in accordance with the evaluation framework set out in the RFP. Any provisional agreements arising from proposals progressed to the contracting phase will be consulted on. Consultation feedback will be considered in its entirety before PHARMAC makes a decision regarding a proposal.

PHARMAC notes that DHBs can continue to purchase products from other suppliers.

16 recently discontinued ostomy products have been removed from Convatec’s agreement as a result of this consultation feedback.

Convatec agreement

A DHB procurement manager requested clarification about the supply of specific ranges of proposed products.

PHARMAC has clarified with Convatec and responded directly to the procurement manager.

USL Medical agreement

Asked whether a private organisation contracted to provide services for DHB patients is a party to PHARMAC’s agreement.

PHARMAC notes that, while private organisations cannot be party to PHARMAC agreements, suppliers may choose to pass on the PHARMAC pricing to DHB contracted organisations.

USL Medical and Convatec agreements

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

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.