Executive Summary
New Zealand’s healthcare system is comprised of public, private and voluntary sectors. Around 85% of New Zealand’s healthcare is government funded. In May 2021, the New Zealand Government’s annual healthcare budget was approximately $17.3 billion USD.
New Zealand citizens receive free or subsidized healthcare. Although the quality of care is very good, Maori, Pacifica, and people with disabilities are recorded as experiencing poorer health outcomes. To address these inequalities, from July 1, 2022, the New Zealand Government is launching a new entity called Health New Zealand, which will manage New Zealand’s public hospitals and the commissioning of primary and community health services. The existing 20 District Health Boards will be replaced by four regional divisions. Health New Zealand is expected to reduce complexity and waste on administrative duplication of non-health services as well as centralizing procurement requirements.
The private healthcare system is dominated by Southern Cross Healthcare, which also runs a small network of hospitals and works closely with the public healthcare system. There are several private chains specializing in geriatric care.
The United States is New Zealand’s largest source of healthcare products.
New Zealand’s healthcare sector is very receptive to U.S. technologies and is constantly seeking new solutions that can add value to a healthcare system under constant pressure to minimize costs while delivering rising standards of excellence.
Market Entry
Medsafe is the New Zealand Medicines and Medical Devices Safety Authority. Medsafe decides which medicines, related products and medical devices are safe and effective for New Zealanders to use. They check that these products meet standards of quality, safety and efficacy. Medsafe is responsible for the regulation of medicines and medical devices in New Zealand. A supplier of medical devices seeking to enter the New Zealand market is required to provide notification of the device on the Medsafe Web Assisted Notification of Devices (WAND) system. Following this, a local sponsor (typically a distributor or company representative) must complete the notification process within 30 days.
The Pharmaceutical Management Agency (PHARMAC), which is owned by the New Zealand Government, is responsible for all pharmaceuticals and some medical devices contracted to the public health system. Pharmac usually considers a medicine or related product for funding only after approval by Medsafe (but there can be good reasons for funding an unapproved medicine). Pharmac is aggressive in negotiating its supply contracts, both on price and contractual terms.
New Zealand Government tenders are advertised on the Government Electronic Tenders (GETS) system: www.gets.govt.nz Subscription to GETS is free.
Current Market Trends
The New Zealand public expect a high standard of products and services via the taxpayer-funded universal healthcare system. Since the global pandemic began, New Zealand’s public healthcare system has focused on managing COVID19 as well as providing services reflecting New Zealand’s aging population:
• Oncology
• Obesogenic and diabetic care, including remote management and telehealth solutions
• Cardiovascular
• Mental health
• Renal
Best Prospects
- Hospital technologies for chronic diseases
- Telehealth solutions
- Generic/bulk suppliers of disposables
New Zealand Medical Devices Market
|
|
2018
|
2019
|
2020
|
2021
(Estimated)
|
|
Total Local Production
(Estimated)
|
1,000.0
|
500.0
|
1,000.0
|
1,000.0
|
|
Total Exports
|
942.2
|
404.4
|
934.0
|
900.0
|
|
Total Imports
|
1,146.5
|
1,221.6
|
1,131.6
|
1,200.0
|
|
Imports from the US
|
321.4
|
323.6
|
185.6
|
200.0
|
|
Total Market Size
|
1,204.3
|
1,317.2
|
1,197.6
|
1,300.0
|
|
Exchange Rates
|
1.45
|
1.44
|
1.42
|
1.42
|
Unit: USD (Millions)
Source: Trade Policy Information System (TPIS), Common Data Platform
New Zealand Pharmaceutical Market
|
|
2018
|
2019
|
2020
|
2021 Estimated
|
|
Total Local Production
(Estimated)
|
1,000.0
|
1,000.0
|
1,000.0
|
1,000.0
|
|
Total Exports
|
888.5
|
859.2
|
851.3
|
860.0
|
|
Total Imports
|
299.0
|
331.0
|
264.0
|
300.0
|
|
Imports from the US
|
41.5
|
45.0
|
48.8
|
50.0
|
|
Total Market Size
|
410.5
|
471.8
|
412.7
|
440.0
|
|
Exchange Rates
|
1.45
|
1.44
|
1.42
|
1.42
|
Unit: USD Millions
Source: Trade Policy Information System (TPIS)
Market Size
|
Healthcare spending (including investment)
|
|
|
… as percent of GDP
|
9.5
|
|
… of which spent on inpatient services (including long-term care)
|
12.1
|
|
… of which spent on pharmaceuticals/consumables
|
6.8
|
Hospitals, Procedures, Healthcare Professionals UN:
|
Number of hospitals
|
|
|
…Public
|
210
|
|
…Private
|
73
|
|
Number of hospital beds
|
|
|
… available beds per capita
|
2.8 per 1000
|
|
Number of surgical procedures
|
5600
|
|
…of which Coronary Artery Bypass Grafts (#1)
|
|
|
…of which Angioplasties (#2)
|
|
|
Physicians
|
3.1 per 1000 population
|
|
…of which surgeons
|
0.07 per 1000 population
|
|
…of which internists
|
0.36 per 1000 population
|
|
…of which pediatricians
|
0.09 per 1000 population
|
|
Dentists
|
2300 (estimated registered and practicing)
|
Demographics
|
Population
|
4.9 million (March 2019 est.)
|
|
Life expectancy men/women
|
81.3 (total population)
79.1 (male)
83.5 (female)
|
|
Infant mortality
|
4.4 deaths per 1000 live births
|
|
Percent of population older than 65
|
16%
|
|
…projection, 2030
|
22%
|
|
Annual deaths
|
|
|
…caused by Cancer, %
|
50.2
|
|
…caused by Ischemic Heart Disease, %
|
15.8
|
|
Prevalence of Alzheimer’s Disease/dementia (fastest growing cause of death)
|
4.7 per 100,000
|
Main Competitors
U.S. companies face competition in this market from major global suppliers and other U.S. suppliers. There is increasing competition from manufacturers in China and other Asian economies who tend to compete on price.
Current Demand
New Zealand’s aging population influences public healthcare expenditure plans. New Zealanders expect access to advanced equipment to manage chronic diseases (chronic diseases account for around 80% of healthcare use). New innovative technologies are important to meet this objective.
U.S. companies specializing in healthcare products have a strong reputation in New Zealand based on performance, cost, and reliability. Opportunities exist for U.S. companies specializing in new innovative technologies that reduce overall patient costs, leading to faster patient recovery and reduced rehabilitation costs.
Registration Process
Medsafe is the New Zealand Medicines and Medical Devices Safety Authority. Medsafe is responsible for the regulation of medicines and medical devices in New Zealand.
Website: www.medsafe.govt.nz
Reimbursement
PHARMAC decides what medicines to fund for hospital use in New Zealand, as well as some medical devices. The list of funded (subsidized) medicines and the rules applying to funding are contained in the Pharmaceutical Schedule.
Website: www.pharmac.govt.nz
Barriers
New Zealand is an open market with few, if any, barriers to U.S. companies. Some suppliers view PHARMAC’s methodology for setting reimbursement rates as an obstacle.
Procurement & Tenders
New Zealand Government tenders are advertised on the Government Electronic Tenders (GETS) system: www.gets.govt.nz. Subscription to GETS is free.
In the past, individual DHBs chose to undertake their own procurement for bulk items. To avoid levels of complexity to the supply chain, PHARMAC is now tasked to negotiate contracts for some DHB hospital medical devices:
- Wound care
- Sutures
- Disposable laparoscopic devices
- Interventional cardiology
- Orthopedic products
- Sterilization packaging products and associate consumables
- Medical thermometer products
- Single-use instruments
- surgical gloves
- hand hygiene
- venous thromboembolism prevention devices
FAQs
1. Is FDA certification or the CE mark required to export a medical device to New Zealand?
No. The only requirement currently to supply a medical device in the New Zealand market is that it should be “notified” on Medsafe’s WAND database by a local sponsor – usually a distributor or company representative. However, we have been advised that FDA certification and/or CE mark is likely to be mandatory in the near future.
2. What is the industry body representing the interests of medical device manufacturers and their customer base?
The Medical Technology Association of New Zealand (MTANZ) is the only industry body representing medical technology manufacturers, importers, exporters and distributors of medical devices in New Zealand.
U.S. Commecial Service Contact Information
Name: Janet Coulthart
Position: Commercial Specialist
Email: Janet.Coulthart@trade.gov
Phone: +644 462-6002
