Listing on the Pharmaceutical Schedule of a range of orthopaedic implants and associated products with Zimmer Biomet New Zealand

Hospital devices

Decision

PHARMAC is pleased to announce the approval of a listing agreement for the supply of orthopaedic implants and associated products with Zimmer Biomet New Zealand (“Zimmer”).

In summary, the effect of the decision is that:

  • A range of orthopaedic implants and associated products will be listed in Section H, Part III, (‘Optional Pharmaceuticals’) of the Pharmaceutical Schedule from 1 March 2017.
  • DHB hospitals can purchase these items directly from Zimmer.
  • It will deliver National savings of approximately $970,000, with 19 DHBs achieving savings and one DHB having a minimal increase.

Details of the decision

In April 2016 an orthopaedic implants and associated products request for proposal (“RFP”) was released requesting proposals for non-exclusive national agreements for medical devices to PHARMAC for a listing on the Pharmaceutical schedule and Zimmer responded to this request.

The purpose of the RFP was to secure national contracts for DHB hospitals to purchase from, to provide replacement contracts for the current HBL suite of hip and knee contracts due to expire in April 2017 and to provide savings opportunities for the DHBs.

PHARMAC has entered into an agreement with Zimmer for the supply of a selection of orthopaedic implants and associated products to be listed on the Pharmaceutical Schedule. This means that DHB hospitals that purchase these products must do so under the national agreement at the new pricing from 1 May 2016. The list of products will be available on PHARMAC’s website in both a PDF document and an Excel spreadsheet.

All but one DHB that currently use these products will receive savings with a net national saving of approximately $970,000 per annum, based on current usage.

The agreement is not exclusive, DHBs can continue to purchase other brands of orthopaedic implants and associated products at their discretion.

Educational services will be provided by Zimmer to DHB personnel on appropriate use of its orthopaedic implants and associated products and will be arranged in a format and at times as agreed with individual DHBs.

Feedback received

We appreciate all of the feedback that we received and acknowledge the time people took to respond. All consultation responses received by 27 January 2017 were considered in their entirety in making a decision on the proposed changes. The following issues were raised in relation to specific aspects of the proposal:

Theme Comment

Concern that PHARMAC take into account safety requirements for both patients and DHB staff, particularly in relation to crate weights of products

All products require WAND registration and proof of international compliance certificates.

PHARMAC contracts require suppliers to comply with the DHBs policies and procedures when supplying products, and this includes observing all relevant health and safety requirements.

Supplier requested access to tiered pricing and discount levels

This is confidential and commercially sensitive information and would not be released to any third parties.

Welcome opportunity to provide feedback

Overall support for proposal and will look to monitor impact on market dynamics over time  

We appreciate the feedback.

More information

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.