Proposal to list a range of Wound Care products supplied by 3M New Zealand Limited

In summary, this proposal would result in:

• Around 250 wound care products which are already supplied to DHB Hospitals being supplied by 3M under a proposed national agreement that all DHBs may purchase under, subject to consultation and approval (“Agreement”). This Agreement is not a sole supply agreement, and DHBs may continue to purchase other suppliers brands of wound care products.
• 3M providing educational services including a comprehensive range of product and topic related online e3 learning modules, a website that enhances clinician resources on 3M’s range of products, educational workshops held throughout the year that covers a range of topics, and education in-servicing tailored to meets the needs of metropolitan and regional DHB Hospitals as required.
• Estimated total savings to DHBs of approximately $280,000 per annum based on current usage. Pricing for wound care products in the Agreement, subject to any prior termination of the Agreement would not be increased before March 2017.

Feedback sought

PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by Wednesday, 12 March 2014 to:

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 the Agreement for a range of wound care products in the dressings, bandages, casting, tapes and other categories of wound care. 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:

• TEGADERM RANGE
• MEDIPORE
• COBAN RANGE
• COBAN 2
• BLENDERM
• TRANSPORE
• MICROFOAM
• MICROPORE
• DURAPORE
• MEDIPORE
• TRANSPORE
• KIND REMOVAL
• SCOTCHCAST
• SCOTCHCAST PLUS
• PRIMACAST
• 3M SYNTHETIC CAST STOCKINET
• 3M SYNTHETIC CAST PADDING
• 3M CANVAS CAST SHOES
• RESTON
• CAVILON NSBF FOAM APPLICATOR
• CAVILON NSBF WIPE
• CAVILON NSBF PUMP SPRAY BOTTLE
• STERI-STRIP RANGE

If the Agreement is approved by PHARMAC’s Board or its delegate, 3M’s range of wound care products would be listed in Part III of Section H of the Pharmaceutical Schedule, which contains products with national agreements that DHBs are able to purchase under.

The Agreement includes terms for education services to be provided by 3M to DHB personnel on appropriate use of its wound care products, which is to be provided at times as agreed with individual DHBs.

The Agreement also includes minimum order quantity requirements per products in order to obtain the Schedule pricing.  This information will be provided to DHB Procurement Departments together with the pricing and product range of this proposal. 

Wound care products would be listed in Part III of Section H of the Pharmaceutical Schedule. We propose that the wound care products would not be listed in the printed Section H of the Pharmaceutical Schedule, but rather in an Addendum to Part III of Section H available on our website in an Excel spreadsheet format, and a PDF document.

Background

In August 2013 PHARMAC issued a registration of interest document, seeking proposals from suppliers for non-exclusive national agreements for wound care products. Following the closure of this request, we have been working with a number of suppliers in order to seek to reach an agreement with them. The Agreement is one of the first of these and we aim to consult on additional proposed agreements over the next couple of months, provided we can reach agreement with the suppliers.