Proposal to list a range of orthopaedic implants and associated products supplied by Zimmer Biomet New Zealand

In summary, this proposal would result in:

• Approximately 12,500 products, which are already supplied to DHB Hospitals, being supplied by Zimmer Biomet under a proposed national agreement. This agreement would not be a sole supply agreement, and DHBs would continue to be able to purchase other brands of orthopaedic implants and associated products.
• Zimmer Biomet providing educational services that will be tailored to suit the needs of individual DHB Hospitals in format and time as required by DHB Hospitals.
• Estimated total savings to DHBs of approximately $970,000 per annum, based on current usage. Pricing for orthopaedic implants and associated products would not be increased before 1 March 2020 subject to any prior termination of the agreement.  

The agreement would supersede any existing DHB contracts with Zimmer Biomet for the devices included in the Agreement. This would mean a device purchased by a DHB that is listed in the PHARMAC agreement would have to be purchased at the price as stated in the agreement, effective from the date of listing on the Pharmaceutical Schedule.

Orthopaedic implants and associated products not listed on the Pharmaceutical Schedule may still be purchased by DHBs, and DHBs would be under no obligation to purchase devices from Zimmer Biomet.

Feedback sought

PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by 4pm Friday 27 January 2017 to:

Maree Hodgson
Senior Device Category Manager
PHARMAC
PO Box 10254
Wellington 6143

Email:   maree.hodgson@pharmac.govt.nz

Fax: 04 460 4995

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 for a range of orthopaedic implants and associated products. The exact product range in this proposal has not been included in this consultation for brevity, however we are making it available to Procurement Departments at DHBs, and it is available on request.

Brand ranges in the agreement include:

Joint replacement implants

Knee Joints