Pharmac delivers savings on medical devices

Health Minister Jonathan Coleman says Pharmac is delivering millions in savings for DHBs on hospital medical devices.

“DHBs are benefiting as a result of Pharmac’s expanded role in national procurement of hospital medical devices - making savings which can be reinvested into frontline health services,” says Dr Coleman.

“Pharmac now has 34 national contracts for medical devices covering around 20,000 items from bandages and sutures, to orthopaedic drills and cardiac stents. Worth up to $72 million of annual DHB expenditure, these contracts will save DHBs around $25 million over the next five years.

“The savings made for DHBs on medical devices will continue to grow as Pharmac’s national contracts enable greater competition.”

Pharmac’s role was expanded in 2013 to include national contracting for hospital medical devices, management of medicines in DHB hospitals, management of community medicines, pharmaceutical cancer treatments, and the National Immunisation Schedule.

Budget 2016 invests an extra $124 million over four years to enable Pharmac to provide increased access to new medicines.

Pharmac’s budget for 2016/17 is a record $850 million. The Government has increased Pharmac’s budget by $200 million since 2008.

3.5 million New Zealanders received a subsidised medicine in the last financial year - that’s three out of four Kiwis. More than 51,000 Kiwis benefited from 21 new and widened access to medicines in 2015/16.