Proposal to list a range of medical thermometer products and medical devices used in the prevention of venous thromboembolisms (VTE Prevention) supplied by Medtronic New Zealand Limited

Hospital devices

Consultation Closed

PHARMAC is seeking feedback on a proposal to list a range of medical thermometer and VTE Prevention products supplied by Medtronic New Zealand Limited (“Medtronic”) in Part III of Section H of the Pharmaceutical Schedule from 1 December 2017.

In summary, this proposal would result in:

  • Schedule listings for 101 products being supplied by Medtronic under a proposed national agreement that all DHBs may purchase under, subject to consultation and approval (“Agreement”).
  • DHBs continuing to be able to purchase other suppliers’ brands of medical thermometer and VTE Prevention products, as the Agreement would not be for sole supply.
  • The products being available for DHBs to purchase at the PHARMAC negotiated prices from 1 December 2017.
  • Medtronic providing servicing and maintenance of the equipment included in the Agreement where applicable.
  • Medtronic providing educational services that would be tailored to suit the needs of individual DHB Hospitals in formats and at times as required by DHBs.
  • Estimated total savings for medical thermometer products to DHBs of approximately $41,000 to $311,000 per annum, based on current usage and depending on the pricing option that is selected. 
  • Estimated total savings for VTE Prevention products to DHBs of approximately $684,000 per annum based on current usage.
  • Pricing for these products in the Agreement, subject to any prior termination of the Agreement would not be increased before 1 December 2020.

Feedback sought

PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by 5pm Wednesday, 25 October 2017 to:

Alyssa Currie
Device Category Manager
PHARMAC
PO Box 10254
Wellington 6143

Email: alyssa.currie@pharmac.govt.nz

All feedback received before the closing date will be considered by PHARMAC’s Board (or its delegate) prior to making a decision on this proposal.

Feedback we receive is subject to the Official Information Act 1982 (OIA) and we will consider any request to have information withheld in accordance with our obligations under the OIA. Anyone providing feedback, whether on their own account or on behalf of an organisation, and whether in a personal or professional capacity, should be aware that the content of their feedback and their identity may need to be disclosed in response to an OIA request.

We are not able to treat any part of your feedback as confidential unless you specifically request that we do, and then only to the extent permissible under the OIA and other relevant laws and requirements. If you would like us to withhold any commercially sensitive, confidential proprietary, or personal information included in your submission, please clearly state this in your submission and identify the relevant sections of your submission that you would like it withheld. PHARMAC will give due consideration to any such request. 

Details of the proposal

PHARMAC has entered into a provisional Agreement with Medtronic for a range of medical thermometer and VTE Prevention products. The exact product range and pricing in this proposal has not been included in this consultation for brevity, however we are making it available to Procurement Departments at DHBs. Brand ranges in the agreement include:

Medical thermometer products

  • Filac
  • Genius
  • Mon-a-therm

VTE prevention products 

  • T.E.D
  • SCD
  • A-V Impulse

If the Agreement is approved by PHARMAC’s Board or its delegate, Medtronic’s range of medical thermometer and VTE Prevention products would be listed from 1 December 2017 in Part III of Section H of the Pharmaceutical Schedule, which contains products with national agreements that DHBs are able to purchase under.

DHBs would be able to continue to choose which medical thermometer and VTE Prevention products they purchase.

The Agreement includes terms for servicing and maintenance of equipment to be provided by Medtronic to DHBs, which are to be provided annually at times as agreed with individual DHBs, where applicable. The details of the servicing and maintenance commitments will be made available to the appropriate DHB personnel for this consultation process.

The Agreement includes terms for training and education services to be provided by Medtronic to DHB personnel on appropriate use of its medical thermometer and VTE Prevention products, which is to be provided at times as agreed with individual DHBs.

Background

In February 2016 and May 2016, requests for proposals (RFPs) were issued for medical thermometer products, and medical devices used in VTE Prevention, respectively.  The RFPs requested proposals for non-exclusive national agreements for listing on the Pharmaceutical Schedule. 

The proposed agreement with Medtronic is the first provisional agreement for the supply of medical thermometer products and the second provisional agreement for the supply of VTE Prevention products that PHARMAC has consulted on. Further consultations in these categories are expected over the next few months provided we can reach provisional agreement with the other suppliers we are currently working with.