Proposal to list single use instruments supplied by B. Braun New Zealand Pty Limited

Hospital devices

Consultation Closed

What we’re proposing

PHARMAC is seeking feedback on a proposal to list a range of single use instruments, in Part III of Section H of the Pharmaceutical Schedule from 1 August 2018, through a provisional agreement with B. Braun New Zealand Pty Limited (“B. Braun”).

Consultation closes at 4pm on Friday, 22 June 2018 and feedback can be emailed to rob.turner@pharmac.govt.nz.

What would the effect be?

From 1 August 2018 a range of B. Braun’s single use instruments would be listed under the proposed national agreement for all DHBs to purchase under, subject to consultation and approval by PHARMAC’s Board or delegate (“Agreement”).

This Agreement would not be for sole supply, with DHBs continuing to be able to purchase other suppliers’ brands of single use instruments.

This Agreement would supersede any existing DHB contracts with B. Braun for the devices included in the Agreement. Any device listed in the Agreement and purchased by a DHB would be at the price, terms and conditions stated in the Agreement, effective from the date of listing in the Pharmaceutical Schedule.

PHARMAC estimates the national financial impact of this Agreement is a saving of $600 per annum on current DHB spend on these products – this reflects a saving of about 25%.  

As part of the Agreement, B. Braun would provide educational services that would be tailored to the individual needs of DHBs, in formats and at times as required by DHBs.

Who we think will be interested

  • Suppliers and Wholesalers
  • DHB Staff
    • Clinical staff
    • Clinical engineers
    • Procurement and supply chain personnel
    • Sterile Services personnel

About the medical devices

Single use instruments are designed to be used once and then disposed of or destroyed – these are also known as disposable instruments. Some single use instruments may be used in many hospital settings such as operating theatres, emergency departments, wards and clinics.

While volumes of single use instruments are growing, usage varies in each hospital with many using a combination of single use and reusable instruments.

PHARMAC has not undertaken any work to compare the use or cost effectiveness (including sustainability and carbon costs) of single use instruments with reusable instruments, and this proposal does not require hospitals to switch from reusable instruments.

Why we’re proposing this

In 2016 PHARMAC issued Requests for Proposals (“RFPs”) for single use instruments. The RFPs were for non-exclusive national agreements for listing in the Pharmaceutical Schedule.

PHARMAC has been working with suppliers who responded to the RFP to seek provisional agreements and this proposal is the latest to arise from these processes. We expect to consult on further proposed agreements with other suppliers over the coming months.

Details about our proposal

PHARMAC has entered into a provisional Agreement with B. Braun that would result in 67 single use instruments being listed on the Pharmaceutical Schedule from 1 August 2018. Pricing information has been made available to appropriate DHB personnel.

DHBs would be able to continue to choose which SUI products they procure.

The Agreement includes terms for training and education services to be provided by B. Braun to DHB personnel on appropriate use of their medical devices, which is to be provided at times as agreed with individual DHBs.

The following information provides a summary of the brand and product ranges in the proposed agreement.

Aesculap brand of:

  • Blades
  • Scalpels
  • Forceps
  • Needle holders
  • Scissors

To provide feedback

Send us an email: rob.turner@pharmac.govt.nz by 4pm, 22 June 2018.

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.