New Zealand approves dual-agency approach for medical device procurement

HNZ and Pharmac will manage separate roles, with room for partnership.

The New Zealand Cabinet has approved a framework that recognises that both Health New Zealand (HNZ) and Pharmac are best suited to managing and procuring certain medical devices.

Each agency will have a separate responsibility for procurement, with scope to collaborate where required.

The approach provides clarity for manufacturers by clearly defining agency responsibilities, Associate Health Minister David Seymour said.

“Pharmac are experts at assessing more technical devices with a direct therapeutic impact on patients,” he added.

Meanwhile, HNZ spends nearly $868.4m (NZ$1.5b) annually on medical devices, according to Health Minister Simeon Brown.

“If Health New Zealand is looking at new MRI machines, it can draw on Pharmac’s independent evaluation expertise,” Brown said.

Moreover, the agency can use its ability to bulk-purchase and re-tender contracts.

“A recent example is procurement to address glove supply and pricing risks, where Health New Zealand initiated short-term tenders to secure a reliable supply and saved more than $1.7m (NZ$3m),” he added.

NZ$1 = $0.58