- Hon Simeon Brown
- Hon David Seymour
Medical device procurement will be more efficient, more certain, and more transparent, Associate Health Minister David Seymour and Health Minister Simeon Brown say.
Cabinet has agreed a new two-agency approach for the procurement of medical devices in New Zealand. The new approach recognises that both Health New Zealand (HNZ) and Pharmac are best suited to managing and procuring certain devices. Each agency will have separate responsibility for the procurement of certain devices, but they will work together too.
This comes off the back of years of debate and reporting on which agency is best suited for procuring medical devices.
"Device procurement has been paralysed for at least 13 years. In 2012 it was recommended Pharmac takeover device procurement. It never happened. Then the DHB's were merged into HNZ, and there was a recommendation for them to take over. It was rejected. The industry has been exasperated by the uncertainty. Finally, everybody involved has clarity," Mr Seymour says.
"I'm focussed on fixing what matters. Procurement will be more efficient, certain, and transparent. It will encourage and reward innovation. For Kiwis this means better health outcomes, greater productivity, and a stronger future. Patients may not have felt the problem, because inefficiency was the status quo. They will feel the difference.
"We have clearly split the categories to provide certainty for medical device manufacturers. This allows them to confidently invest in innovation because they know what agency is responsible for their devices.
"Pharmac are experts at assessing more technical devices with a direct therapeutic impact on patients. Those devices often need a high level of clinical input. So Pharmac will be responsible for them. Examples of these devices are surgical implants and anaesthetic machines.
"Agencies will be transparent with clinicians and manufacturers about what they are looking for. This gives manufacturers the confidence to invest in innovation which aligns with demand and meets contracting criteria."
Mr Brown says Health New Zealand spends nearly $1.5 billion each year on medical devices.
"From cotton swabs and bandages to hospital beds and advanced imaging equipment, we need to make sure that every dollar is delivering good value for patients," Mr Brown says.
"Health New Zealand is best placed to lead procurement for devices that are less therapeutic but have higher integration requirements with facilities and models of care - such as hospital beds, diagnostic machines, and imaging equipment.
"While agencies have different responsibilities, they will work together. For example, if Health New Zealand is looking at new MRI machines, it can draw on Pharmac's independent evaluation expertise. Pharmac would provide a high-quality Health Technology Assessment to inform Health New Zealand's procurement process.
"Health New Zealand can also 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 $3 million.
"This is smart, patient-focused care in action. We are building a health system that delivers for all New Zealanders and ensures people get the medical devices they need, when and where they need them."
