HNZ to procure medical devices with high integration needs

NEWS - eHealthNews.nz editor Rebecca McBeth 

Health New Zealand | Te Whatu Ora will be responsible for procuring medical devices that have high integration requirements with facilities and models of care, as part of a new two-agency approach to procurement announced by the government.

Under the plan, Pharmac will assess and procure devices with a direct therapeutic impact on patients, which often need a high level of clinical input.

Associate Health Minister David Seymour and Health Minister Simeon Brown say that after 13 years of paralysis over device procurement, this new approach will be more efficient, more certain, and more transparent.

Medical Technology Association NZ (MTANZ) chief executive Cushla Smyth says the decision delivers much-needed clarity, certainty, and accountability, but further detail is needed to fully understand where the challenges and opportunities may lie.

“The next priority will be the transition, where further detail and a clear mechanism for feedback will be essential to help shape the new processes,” she tells eHealthNews.

“Our hope is to work closely with the agencies to help mitigate challenges and maximise the benefits.”

The government says the new approach recognises that both Health NZ and Pharmac are best suited to managing and procuring certain devices, but will also work together.

If Health NZ was looking at new MRI machines, Pharmac would provide a high-quality Health Technology Assessment to inform the procurement process

“We have clearly split the categories to provide certainty for medical device manufacturers,” says Seymour. 

“This allows them to confidently invest in innovation because they know what agency is responsible for their devices.”

Brown says Health NZ spends nearly $1.5 billion each year on medical devices.

“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,” he says.

Seymour told the MTANZ conference in June this year that he favoured Pharmac over Health New Zealand | Te Whatu Ora for device purchasing, saying that while either entity could perform well, "Pharmac would be a little bit better."

The decision ends an 18-month review process in which both Health NZ and Pharmac made cases for why they should do device procurement.

Image: Associate Health Minister David Seymour and Health Minister Simeon Brown

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