Health New Zealand (Health NZ) and Pharmac want to let you know about work currently underway to align hospital medical device procurement and associated contracts. This update is for your information only – no action is needed from you at this stage.
Context
The Government is moving to reduce costs, duplication, and confusion in the evaluation and procurement of hospital medical devices in New Zealand.
The Joint Letter of Expectations (LoE) issued to Health NZ and Pharmac outlined the following responsibilities:
Transition planning and what this means for you
Health NZ and Pharmac have been working together to develop the new approach to managing hospital medical device procurement for New Zealanders.
Our first priority is the smooth transition of responsibilities and contracts by category from Pharmac to Health NZ. As per the LoE (see page 5 of the Letter for the lead agency for each category):
To align with the new lead agency responsibilities, contracts for the supply of hospital medical devices and consumables will either be required to:
Suppliers affected by these changes will be contacted directly
We will shortly be contacting suppliers whose contracts will need to transition. Only suppliers with affected contracts will be contacted at this stage, once a consolidated position has been confirmed for all contracts held with that supplier.
For these suppliers:
The transition of contracts will be phased, starting with a limited number of suppliers, who will be advised that they are part of this initial group. Each subsequent group will be notified, in the same way, over the next three months.
No action is required from suppliers at this time. Suppliers will be contacted directly once engagement is required.
New Medical Devices Supplier Reference Group
We have established a Medical Devices Supplier Reference Group to provide supplier insights, as we design and implement new joint processes, identify risks and opportunities, and improve how we work together during the transition period.
The Group includes a cross‑section of suppliers and manufacturers, including MTANZ and non‑MTANZ members, who represent supplier perspectives. It is co‑chaired by Catherine Epps (Pharmac) and Andrea Gregory (Health NZ) and will meet every two months.
The first meeting on 11 March focused on confirming its purpose, expectations, and role within the wider transition programme. You can read a summary of the meeting here.
Thanks for your ongoing support while we undertake this transition. If you have any immediate questions, please get in touch with your usual Pharmac or Health NZ contacts.
