5 July 2016 - New data from PHARMAC is predicting DHB hospital spending on surgical and medical devices will fall by about $25 million over coming years.

And this is set to grow with a consultation released today that, if implemented, would save a further $3.2 million over five years. This comes from using market share procurement for some categories of wound care devices – offering a guaranteed share of the market to suppliers in return for price reductions.

PHARMAC’s work in national contracting for hospital medical devices continues to grow, with six new contracts effective 1 July that take the number of devices on the Pharmaceutical Schedule to over 20,000.

These new agreements were for sutures, sterilisation products, interventional cardiology, and orthopaedic trauma products.

Overall PHARMAC has negotiated national contracts for products representing current spending of around $70 million per year. With price reductions negotiated by PHARMAC the hospitals making use of those contracts could collectively save $25 million over five years.

View PHARMAC press release