Update from Pharmac and Health NZ on hospital medical device procurement

Health NZ and Pharmac are providing an update on the joint work underway to align hospital medical device procurement. The Joint Ministerial Letter of Expectations (LoE) continues to guide this work, with a focus on clearer roles between Pharmac and Health NZ, reduce duplication, and have a more coordinated approach to procurement. 

This update is for your information only – no action is needed from you at this stage. 

Category leadership and contract transition 

Since our last update, we have further refined the category leadership structure to make it clearer which categories of medical device each agency is leading.  

Click on this link to see the Lead Agency lists showing the categories that each agency will be leading.  

Contract transition activity is now well underway to align with this joint procurement model. As outlined previously, contracts will either: 

• Fully transfer to Health NZ 
• Partially transfer (where contracts span categories led by both agencies) 
• Remain unchanged where the lead agency is not changing 

The transition is being delivered by sending updated agreements to suppliers in a phased approach from March through to the beginning of July. Earlier phases have focused on simpler, single-category arrangements, with later phases including multi-category and partial transfers.  

• Phase 1 – focused on a small number of suppliers with simpler, single‑category arrangements, where contracts could be fully transferred. This covered Lab equipment and consumables. 
• Phase 2 and 3 – expanded to include more suppliers and categories, such as imaging, laboratory, rehabilitation, continence and sterilisation, building on lessons from the initial phase. 
• Phase 4 – this included a larger and more diverse group of suppliers, including those supplying across multiple categories. 
• Phase 5 – will include the most complex arrangements, including multi‑category suppliers and contracts requiring partial transfers across both agencies. 

We have sent out all contracts in the first 4 phases and are now commencing phase 5. This phased approach allows us to manage complexity, refine our approach as we progress, and minimise disruption for suppliers. Suppliers continue to be contacted directly ahead of any changes that affect their contracts, in line with this phased approach. 

Thank you to all suppliers who have been part of this process. So far, we have we had 47 agreements fully executed and returned, which is just over half. 

Once contracts have transferred to Health NZ, business-as-usual contract management practices will apply, including ongoing supplier relationship management through the relevant category lead agencies. 

To support this, we are developing a clear set of contact points for both agencies. All enquiries will be triaged and directed to the appropriate teams: 

• Pharmac: devices@pharmac.govt.nz 
• Health NZ: procurement-ssrm@tewhatuora.govt.nz 

Supplier Reference Group – May meeting update 

We held the second meeting of the Medical Devices Supplier Reference Group on 19 May. The session focused on hearing supplier feedback on contract transition activity, supplier experience, and priority issues. We also discussed our supplier communications approach, including for the MTANZ conference. 

We continue to hear consistent themes from suppliers, including the importance of: 

• clear and up-to-date information on category leadership 
• visibility of transition plans and timeframes 
• clarity on roles, responsibilities, and points of contact. 

This feedback is informing how we shape our communications and next steps. You can read the meeting summary published on www.pharmac.govt.nz/hospital-devices/pharmac-health-nz-supplier-reference-group 

If you have any questions, please contact your usual Pharmac or Health NZ contact, or use the contact details above.