As Canada only represents two per cent of the global healthcare marketplace, our national membership spanning seven provinces and the territories is vital in implementing strategies that reduce the impact of supply disruptions, which to date have helped avoid over 80 per cent of medication shortages for its members.

With input from both members and suppliers, HealthPRO recently revised its injectables contract strategies.

Critical Drug Strategy

HealthPRO’s Critical Drug strategy, whereby a list of vital medications is compiled before an RFP, allows suppliers to better prepare their operations to meet the established demand.

As part of HealthPRO’s Critical Drug strategy, suppliers are now required to hold 90 days of inventory in Canada, ready for sale to minimize the risk of supply challenges. There are also increased reporting requirements from suppliers so members can implement mitigation strategies in the event of supply disruptions.

Key Benefits

• Increased inventory on-hand due to 90-day stipulation
• Stabilization for members when supply chain disruptions occur

Substitute Supplier Contract Strategy

Through HealthPRO’s new Substitute Supplier strategy, suppliers who bid but are not awarded the primary contract will now be awarded a Substitute Supplier contract.

Previously, if the contracted supplier experienced a supply disruption, alternative suppliers would sometimes charge up to 1,000% more to purchase their products off contract.

By submitting a response to HealthPRO’s Pharmacy RFPs, the Substitute Supplier will agree to limit charges up to the lesser of three times (3x) their bid price or their list price, when the contracted supplier faces a supply constraint.

Key Benefits

• Lower initial expense when purchasing products from a non-contracted supplier
• Price stabilization for suppliers encourages them to bid on our contracts, fostering assurance of supply for members

Split Award Contract Strategy

For critical medications, HealthPRO awards two suppliers to ensure members have access to a secondary source of supply should one experience a disruption – it is only viable to keep more than one supplier in the Canadian market through national volumes.

Following a consultation with both members and suppliers, we are enhancing the strategy by moving from a 60/40 split to a 50/50 split ratio when deemed to be appropriate.

This will ensure a balanced obligation on the part of both suppliers to support the market during a supply disruption, resulting in a more stabilized supply of vital medications for our members.  

Key Benefits

• Products vetted through rigorous product evaluation, assuring both products are high quality
• Better assurance of supply with equal responsibility to ramp up during a supply disruption
• More stabilized supply chain with focus on split awards for critical drugs