Proposal to list orthopaedic hip and knee implants, cement and associated products on the Pharmaceutical Schedule

Hospital devices

Consultation Closed

PHARMAC is seeking feedback on a proposal to list further ranges of orthopaedic implants and associated products supplied by Stryker New Zealand Ltd (“Stryker”) in Part III of Section H of the Pharmaceutical Schedule from 1 February 2017 (“Agreement”).

In summary, this proposal would result in:

  • Around 3700 orthopaedic joint implants, additional craniomaxillofacial implants, cement and associated products, which are already supplied to DHB Hospitals, being supplied by Stryker under a proposed national agreement that all DHBs may purchase under, subject to consultation and approval. This agreement would not be a sole supply agreement, and DHBs would continue to be able to purchase other suppliers’ brands of orthopaedic implants and associated products.
  • Stryker continuing to provide educational services that will be tailored to suit the needs of individual DHB Hospitals in format and time as required by DHB Hospitals.
  • a small cost or saving depending on the DHB, with the opportunity for DHB’s to access savings based on a commitment level.

In summary, this proposal would result in Stryker’s ranges of medical devices being available for DHBs to purchase at PHARMAC negotiated prices from 1 February 2017 subject to consultation and approval.

DHBs may continue to choose to purchase other suppliers brands of medical devices.

Feedback sought

PHARMAC welcomes feedback on this proposal. To provide feedback, please submit it in writing by 22 Dec 2016 to:

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

Email: devices@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

Stryker’s range of Medical Devices would be listed in Part III of Section H of the Pharmaceutical Schedule from 1 February 2017.

The additional product range includes:

Additional CMF Implants Brands

  • Medpor
  • Universal Neuro 3

Hip Implant Brands – covering all primary and revision requirements

  • Accolade II
  • Accolade C
  • Accolade TMZF
  • ADM X3
  • Anato
  • Exeter
  • MDM X
  • Restoration
  • Restoration PS
  • Restoration HA
  • Secure-Fit Advanced
  • Secure-Fit Max
  • Secure-Fit Plus Max
  • Stryker
  • Trident

Knee Implant Brands – covering all primary and revision requirements

  • Avon
  • Duracon
  • GMRS
  • HMRS
  • Restoris
  • Scorpio
  • Stryker
  • Triathlon

Cement Brand

  • Simplex

Associated products - Stryker branded ranges of

  • Navigation equipment consumables including pins and batteries
  • Cement mixing and cement delivery systems
  • Power tool consumables including burrs, blades, rasps, routers and drill bits

A full detailed list of products is available on request.

The exact product list, pricing and specific Agreement arrangements in the proposal have not been included in this consultation for brevity. The new orthopaedic implant and associated products ranges have a tiered pricing arrangement that could offer further savings to the Schedule listed pricing based upon DHB volume commitment. DHBs can choose the level of commitment they wish to make, in each of the ranges above, to determine the pricing tier they would be on in each range.

The details of this tiered pricing arrangement and commitment levels would remain confidential and would only be made available to the appropriate personnel at DHBs to work through with their clinical teams.

If the Agreement is approved, by PHARMAC’s Board or its delegate, the range of Medical Devices 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.

Background

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 Stryker responded to this request.

PHARMAC has been working with a number of suppliers in order to reach an agreement with them and will be continuing to do so with others until the RFP process is concluded. The Stryker agreement is the first of these to be finalised and we intend to consult on additional proposed agreements over the next few months, provided we can reach agreement with suppliers.

DHBs would continue to be able to choose which medical devices they purchase.