Paula Bennett: Pharmac Chair on the medical device procurement responsibilities being shared with Health NZ

Pharmac believes it makes sense to leave the day-to-day stuff to Health NZ.  

The Associate Health Minister and Minister Simeon Brown have jointly announced the national agency and drug-buyer can both procure medical devices. 

Pharmac will focus on more-technical equipment —due to its level of clinical input and assessment— and Health NZ on bulk-buying standard items. 

Pharmac Chair Paula Bennett told Mike Hosking it clears up uncertainty around who does what. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
We have new procurement rules between FARMA and Health New Zealand.
In a nutshell, it's about being more efficient and having
a clearer model of responsibilities. Farmac's going to handle the
high tech stuff, so anesthetic machines, that sort of thing,
Health New Zealand buying the sticking plasters as far as
it can work out. Paul Bennett's the chair of FARMAC
and is with us a very good morning to.

Speaker 2 (00:16):
You, good morning.

Speaker 1 (00:18):
Explain why this is a thing.

Speaker 2 (00:21):
Well, back in twenty twelve you looked at it your
head to what you're twenty one dhb's everyone's procuring medical
devices separately. You know, there's no consistency, there's no efficiencies.
It's more expensive than it should be because you've got
twenty one DHBs effectively doing it. So farmacs start taking
it over, doing a much better job, making savings and

(00:42):
everything else. But then you've still got stuff going on
within the hospitals too, and it's not clear as to
what's going on. Twenty twenty two they suggest that it
goes back to Health New Zealand because now they're all
big one and it makes sense. However, concerns that they've
got enough going on with trying to merge everything and
sought out systems, so it stays as a farmac and

(01:02):
then you've got uncertainty and some are doing this and
some are doing that. And so here we are to
sit and made ministers have pulled all the heads together
and I think, quite pragmatically said, come to an agreement
and let's get on with it.

Speaker 1 (01:17):
Do you win because you look like a better agency.
In other words, you're buying the flash stuff in Health
New Zealand's buying the needles.

Speaker 2 (01:24):
I think that it just makes sense that they're doing
the day to day I mean, why would we get
involved in as it's not quite the sticking plasters, but
the bandages they need, the hospital beds. You know they're
living and breathing that every day and they know those needs.
And then there's the more health technical that we have
an expertise and that we do in medicines on a

(01:45):
daily basis. So what have we got, what's coming up,
what's the therapeutic can need? The clinical assessment that goes
alongside of it. So I think it's using the best
of both agencies effectively. Do we save money, Yes, definitely
say money. I mean we already save money, but there
is a lot more efficiencies and savings. You've got suppliers

(02:06):
that are confused as to whom they go to to
talk about what's coming up. I mean, it's exciting the
innovation that we've already got, but what's coming as far
as people being able to be in their homes longer
because of the technologies that can be put in there
and the savings that can come from that. So I
think that there's definitely efficiency.

Speaker 1 (02:24):
Good stuff. Nice to talk to you, Paula Bennett. I'm
glad we clear that up. The Farmact chair with us
this morning. For more from the Mic Asking Breakfast, listen
live to news talks they'd be from six am weekdays,
or follow the podcast on iHeartRadio.