News Video | Policy | GPs | Hospitals | Medical | Mental Health | Welfare | Search

 


Tender produces $23 million savings

Tender produces $23 million savings

Pharmaceuticals used in both hospitals and the community will cost about $23 million less over the next three years as a result of decisions from the latest PHARMAC tender.

PHARMAC has awarded tenders for about 200 products for use in both hospitals and the community from its 2002-03 tender. This was the first tender to incorporate products used in hospitals as well as the community and includes nearly $4 million savings for DHB hospitals.

In some cases, products have dropped in price by nearly 70 percent. The largest price drop in dollar terms is for the osteoporosis treatment etidronate (Etidrate), which produces savings of nearly $4 million over the next three years. Access to this treatment has recently been widened.

PHARMAC Chief Executive Wayne McNee says the savings reinforce the value of tendering as a key tool for managing pharmaceutical expenditure, and for ensuring continued access to medicines.

“Achieving price reductions is essential for effectively managing pharmaceutical expenditure,” Wayne McNee says.

“We’re continuing to see a rise in the volume of medicines being prescribed, and this means we need to make savings just to achieve our budget. So it’s pleasing that the tender continues to be an effective way of doing this.”

Companies who successfully bid for tenders are awarded up to three-year sole subsidised supply contracts for that medicine.

In addition to creating savings, contracting for sole supply also enables PHARMAC to ensure continuing supplies of essential medicines.

Medicines sourced through this method include the antibiotic amoxycillin, folic acid and hydrocortisone tablets. In some cases this includes paying more for some drugs to ensure supply is continued.

© Scoop Media

 
 
 
 
 
Culture Headlines | Health Headlines | Education Headlines

 

Scoop Review Of Books: Almost Getting Away With Murder

The Black Widow by Lee-Anne Cartier: Lee-Anne Cartier is the sister of the Christchurch man found to have been murdered by his wife, Helen Milner, after an initial assumption by police that his death, in 2009, was suicide. More>>

Howard Davis: Triple Echo - The Malevich/Reinhardt/Hotere Nexus

Howard Davis: The current juxtaposition of works by Ralph Hotere and Ad Reinhardt at Te Papa perfectly exemplifies Jean Michel Massing's preoccupation with the transmigration of imagery in a remarkable triple echo effect... More>>

Scoop Review Of Books: Nō Tāu Manawa

Vaughan Rapatahana responds to Fale Aitu | Spirit House by Tusiata Avi.
More>>

9 Golds - 21 Medals: NZ Team Celebrates As Rio 2016 Paralympic Games Close

The entire New Zealand Paralympic Team, led by kiwi sprinter and double gold medallist Liam Malone as flag bearer, are on the bus to the Maracanã Stadium in Rio de Janeiro for the Closing Ceremony of the Rio 2016 Paralympic Games. There, they will celebrate the fantastic successes of the past 10 days. More>>

ALSO:

New Zealand Improv Festival: The Festival Of Moments To Return To The Capital

The eighth incarnation of the New Zealand Improv Festival comes to BATS Theatre this 4-8 October , with a stellar line-up of spontaneous theatre and instant comedy performed and directed by top improvisors from around New Zealand and the world. More>>

ALSO:

CDF Tim Keating: NZ Somme Centenary

"Our generals also knew what to expect, and they built that knowledge into their planning. Each of the four set-piece attacks was fought with a single brigade, with the expectation that the brigade would be used up. A fresh brigade would then be brought up to conduct the next set-piece..." More>>

ALSO:

Get More From Scoop

 
 

LATEST HEADLINES

 
 
 
 
Health
Search Scoop  
 
 
Powered by Vodafone
NZ independent news