Proposal to list medical devices supplied by Cardinal Health Australia Limited

We propose to list medical devices supplied by Cardinal Health in the following categories:

• urology products;
• continence products;
• surgical suction chest and wound drainage; and
• non-dedicated and consumable infusion devices.

Consultation closes at 5pm Thursday 30 July 2020 and feedback can be emailed to enquiry@pharmac.govt.nz.

What would the effect be?

From 1 September 2020, urology products, continence products, surgical suction chest and wound drainage and non-dedicated and consumable infusion devices, supplied by Cardinal Health, would be listed under a proposed national agreement for all DHB hospitals to purchase under, subject to consultation and approval by PHARMAC’s Board or delegate (“Agreement”).

The Agreement would not be for sole supply and DHBs could continue to purchase other suppliers’ brands of products in these categories of devices.

The Agreement would supersede any existing DHB contracts with Cardinal Health for the products included in the Agreement. Any product listed in the Agreement and purchased by a DHB would be in accordance with the terms and conditions, including price, stated in the Agreement effective from the date of listing on the Pharmaceutical Schedule.

Cardinal Health would provide appropriate educational services that would be tailored to the individual needs of DHBs, in formats and at times as required by DHBs.

Pricing for the devices in this Agreement, subject to any prior termination of the Agreement, would not be increased without prior consultation and approval by PHARMAC.

Who we think will be interested

• Suppliers and Wholesalers
• DHB clinical staff in a range of different clinical settings inluding:
  
  • Ambulatory care
  • Intensive care
  • Infection control
  • Occupational health and safety
  • Perioperative care
  • Surgical and general medical care
  • Surgeons - general and specialties
  • Anaesthetists
  • Nurses
  • Gastroenterologists
  • Urologists
  • Community-level care providers
• DHB procurement and supply chain personnel
• Other clinical care providers such as ambulance and hospice providers

About the medical devices

Urology and continence products

Urology and continence products are used in hospital and community setting, from short to long-term use.

Urology products include urethral, suprapubic and sheath catheters, bags and accessories for the management of urinary drainage.

Continence products include a range of devices to help manage bowel and bladder control problems, including pads, collection systems and skin protection products, as well as nappies for infants for use while they are in hospital.

Surgical suction, chest and wound drainage

Surgical interventions of any kind result in tissue damage and blood and other fluid loss. To manage this during the procedure itself, suction equipment is used to remove tissue particles and fluid to ensure the operating field is kept clean and clear.

A drain is described as any material or equipment used to carry fluid or air from inside the body to the surface. Drains can be used with or without previous surgical intervention e.g. chest drains inserted at the bedside or placed in theatre during surgery. Drains can be classified as either open or closed systems.

Irrigation systems can be used to provide a steady flow of a solution across an open wound to provide wound hydration, to remove deep debris and to assist visualisation. It can be applied using a variety of techniques and devices.

Infusion devices

Infusion Devices are medical devices used, or associated with devices used, in the infusion of fluids such as medications, intravenous solutions (such as saline, glucose, and electrolyte solutions), blood, total parenteral nutrition (TPN) solutions into the body. This includes medical devices used in intravenous therapy as well as other infusion therapies.

PHARMAC’s Infusion Devices category includes:

• Non-dedicated and consumable infusion devices not associated with infusion equipment; and
• Infusion equipment and associated devices.

Why we’re proposing this

In 2018 PHARMAC issued Requests for Proposals for

• supply of infusion devices (including non-dedicated and consumable infusion devices and infusion equipment and associated devices)
• supply of surgical suction, chest and wound drainage products; and
• supply of urology, ostomy and continence products.

The RFPs were for non-exclusive national agreements for listing on the Pharmaceutical Schedule.

PHARMAC has been working with suppliers who responded to the RFPs, and proposals were progressed to contract negotiation to seek provisional agreements. These proposals are the latest to arise from this process and we expect to consult on further provisional agreements with suppliers of urology and continence products, surgical suction chest and wound drainage and non-dedicated and consumable infusion devices throughout 2020.

Details about our proposal

The proposal would result in listing 113 products in the Pharmaceutical Schedule from Cardinal Health.

Further information, including pricing and contractual details, has been provided to DHB Procurement personnel. Clinicians interested in further detail on what this change means for their DHB should engage with their Procurement teams.

To provide feedback

Send us an email: enquiry@pharmac.govt.nz by 5pm Thursday 30 July 2020.

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.