Future of national medical device procurement

Source: PHARMAC

In late September the Government announced changes to the procurement of hospital medical devices in New Zealand to reduce costs, duplication and confusion.

Pharmac and Health NZ will be responsible for procuring devices that are most focused on their capabilities and expertise.

The changes will help industry stakeholders understand which agency to work with on different types of medical devices.

“This decision is about providing clarity for suppliers, reducing duplication, and making the system work better for everyone,” says Pharmac’s Director of Medical Devices, Catherine Epps.

Pharmac and Health NZ worked together to identify which of the 55 categories of medical devices they should each be responsible for. Pharmac will lead procurement for 27 categories, while Health NZ will lead 28.

Pharmac will generally be the lead agency for devices that have a direct therapeutic impact on patients and that need a high level of clinical input. For instance, this includes surgical implants and anaesthetic machines.  

“This change leverages the strength of both agencies,” says Epps. “A clear split of responsibilities will also provide the transparency and certainty that suppliers have been asking for.”

Health NZ will generally be the lead agency for high-volume devices that can be standardised across hospitals. This includes things such as Personal Protective Equipment (PPE) and continence products.

Health NZ will also be responsible for procuring devices that need to be integrated into hospital infrastructure, such as MRIs and CT scanners.

As part of this new arrangement, Pharmac will also deliver high-quality, independent assessments to support access to new and innovative devices.

“We’ve received a clear direction from Ministers in the form of a joint Letter of Expectations for Pharmac and Health New Zealand,” Epps says.

The Government expects Pharmac and Health NZ to work together to develop joint priorities and develop an annual medical device plan, as well as create more opportunities for early engagement with suppliers and clinicians.

“We’re looking forward to working closely with Health NZ on the future of hospital medical device procurement,” Epps says.