HealthPRO Canada Annual Review 2023/24

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2023/24

Unlocking innovation and smart solutions for healthcare excellence Canada wide

Message from our President & CEO

Dear Members,

As I reflect on the past year at HealthPRO Canada and our broader healthcare sector, I am inspired by the incredible progress we’ve made through collaboration and partnerships.

While challenges such as supply chain disruptions, economic difficulties, climate change, and a severe shortage of healthcare workers persist, I am confident in our ability to tackle these issues head-on. My conversations with our nationwide network of Members and Suppliers reinforce my belief that together, we can overcome any obstacle.

I am honoured to lead HealthPRO Canada during a time when we are making significant strides as Canada’s group contracting provider for healthcare. We have a clear vision for our future: to drive solutions for our healthcare system’s greatest challenges. By leveraging our national reach, clinical and supply chain expertise, and strong partnerships, we are transforming the Canadian healthcare landscape and improving patient care.

At our AGM last year, we launched our 3-year strategic plan focused on three key pillars:

1. Pursuing world-class procurement

2. Driving insights from data

3. Igniting stakeholder networks

“ “

HealthPRO Canada is BREAKING THROUGH to drive solutions to the biggest challenges we all face. Achieving a truly resilient healthcare supply chain cannot be realized by any one organization alone. Together, we will create a better health system for all Canadians.

One year into our plan, we are making steady progress in all three areas on behalf of our network of over 1,300 Members and hundreds of Suppliers across the country.

Along the way, we have delivered significant results, such as the recently launched Healthcare Supply Chain Playbook. This Playbook, fueled by collaboration across our network, outlines practical actions to reduce disruptions and create a more resilient supply chain. We have also delivered millions of dollars in savings to Members through our contracts and helped innovative Suppliers enter the Canadian marketplace.

We are on track to continue reaching our objectives putting our strategic plan into action in the coming year. We will remain agile and adapt to the evolving procurement, healthcare, and economic environment to best serve our Members.

HealthPRO Canada owes tremendous credit to all of you for our success and accomplishments. Your feedback, ideas, and commitment to improve healthcare for Canadian patients drive us forward.

Enjoy reading our 2024 edition of the Annual Review, where you will find examples of actions we have taken and initiatives we have introduced through collaboration with our stakeholders.

I would like to extend my gratitude to our Members and Suppliers for your continued support and to our Board of Directors for your oversight of our strategy.

Together, we have achieved significant milestones, and together, we will continue to shape the future of Canadian healthcare.

Sincerely,

BOARD OF DIRECTORS

Thank you to our 2023/24 Board of Directors who generously invested their time and energy providing strategic counsel and support throughout the year. We are grateful for your contributions and expertise.

Dr. Bernard Leduc

Independent Director Ottawa, Ontario

Duska Kennedy

Chief Digital Officer, North York General Hospital Toronto, Ontario

Marc Toppings Board Chair

HealthPRO Canada

Vice President and Chief Legal Officer, University Health Network (UHN) Toronto, Ontario

Dr. David Byres

President and CEO, Provincial Health Services Authority (PHSA) Vancouver, British Columbia

Mark Anderson Vice Chair

HealthPRO Canada CEO, 3sHealth Regina, Saskatchewan

Maria Cendou

Executive Chief Operating Officer, Shared Administrative Services, Shared Health Winnipeg, Manitoba

Kim Kerrone

Secretary-Treasurer

HealthPRO Canada Vice President, Chief Financial Officer, Legal Services and Risk Island Health Victoria, British Columbia

Derek Spinney

Vice President Corporate Services, Infrastructure and Chief Financial Officer, Nova Scotia Health Halifax, Nova Scotia

Mark Fam President,

St. Mary’s General Hospital Kitchener, Ontario

Mary Lee

Independent Director Bedford, Nova Scotia

Ian Khan

Independent Director Toronto, Ontario

Independent Director Oakville, Ontario

Independent Director Montreal, Quebec

Welcome to our Incoming Directors Ex Officio

Scott Bishop

Vice President of Corporate

Services and Chief Financial Officer

Newfoundland and Labrador Health Services

Newfoundland and Labrador

Dr. Carolyn Gosse

Clinical Vice President, Home and Older Adult Strategy, University Health Network (UHN) Toronto, Ontario

Dr. Fayez Quereshy

Surgical Oncologist & VP, Clinical, University Health Network (UHN)

Toronto, Ontario

Kelly Thompson

Vice President Finance and Chief Financial Officer, Saskatchewan Health Authority (SHA) Saskatoon, Saskatchewan

Donaldson

President and CEO, HealthPRO Canada Oakville, Ontario

Eileen Tobey
Sébastien Beauchamp
Christine

HealthPRO Canada’s national scope, growing network and collaborative approach puts us in a powerful leadership position. We are breaking through to champion system-wide impact, using our unique voice and influence on issues that matter to Members and Suppliers, as well as millions of Canadian patients.

Our Achievements 2023/24 Highlights

Breaking Through to Build Innovation

Hosted Inaugural Supplier

Tradeshow & Innovation Showcase

By leveraging our national scope and expertise, HealthPRO Canada is breaking through barriers to build innovation. We are at the forefront of transforming the Canadian healthcare landscape.

As we accelerate the adoption of innovative solutions, we are helping Suppliers and Members across Canada thrive and grow.

Last fall, our inaugural Supplier Tradeshow and Innovation Showcase brought together nearly 300 procurement professionals, clinicians, and healthcare suppliers from eight provinces. The event facilitated connections and showcased products from 70 exhibitors, helping innovators break into the Canadian market.

Launched Innovation Accelerator Program

Our Innovation Accelerator Program connects Suppliers with unique solutions to over 1,300 healthcare facilities, accelerating the adoption of cutting-edge technologies that enhance patient outcomes and drive economic prosperity.

In the process, we are setting a new standard for what it means to be innovative in healthcare.

9 Awarded Innovators

Breaking Through to Build Supply Chain Resiliency

HealthPRO Canada is leading an industry-wide movement to protect Canadians from the growing threat of supply disruptions.

We recently launched our Healthcare Supply Chain Playbook, which sets out practical steps for healthcare organizations to mitigate disruptions and create a more resilient, connected system. Collaboration was essential in developing the Playbook, and it will be key to strengthening our supply chain.

Through its development, we engaged over 150 individuals representing over 100 groups, including provincial health authorities, hospitals, global and domestic suppliers, government, group purchasing organizations, and industry associations from across Canada and Europe.

To achieve a truly resilient healthcare supply chain — one that maintains the right product, in the right quantity, on time, in the right place and price — even amidst disruption, cannot be realized by any single organization on its own.

It will require local, domestic and international organizations to increase collaboration and share data with each other more freely. Organizations across the supply chain will have to rethink how we work together to enable safe, high-quality, uninterrupted patient care.

Now, our focus shifts to implementation.

Over the coming year, we will convene cross-sector working groups, including industry partners and government, to create action plans that accelerate the Playbook’s adoption nationwide.

We are grateful to all who shared input and expertise with us as we developed the Playbook. We will continue to seek your support as we lead the way in improving information sharing, agile contracting practices, and collaborative problem-solving for a more resilient supply chain.

Breaking Through a Challenged Economy & HHR

Launched Enhanced Nutrition & Food Program

HealthPRO Canada has leveraged its national scope and purchasing power to help Members and healthcare facilities navigate steep food inflation that has consistently outpaced the general inflation rate.

Since December 2021, prices for essential food items have increased sharply, challenging healthcare facilities to maintain nutrition quality while managing costs. This inflation has necessitated strategic adjustments in procurement and menu planning within healthcare institutions.

Our enhanced Nutrition & Food Program now brings together $15 billion in national purchasing power, delivering an average of six to 15 percent savings to our Members.

In addition to financial benefits, the enhanced program offers a multitude of value-added services including menu planning and access to more than 6,000 recipes that can be tailored to different patient populations.

The program also streamlines administrative processes, which is helpful as healthcare facilities continue to experience staffing shortages.

Delivered Balanced Risk Contracts in Challenging Times

As we navigate difficult economic conditions, implementing innovative procurement strategies with balanced risk is crucial.

Global supply chain challenges, inflationary pressures and limited access to accurate demand forecasts have put unprecedented strain on Suppliers. To ensure continuous supply for patient care without disruptions, we have strategically negotiated contracts, in critical areas like IV solutions and Peritoneal Dialysis.

These smart strategies maintain competitive pricing while ensuring uninterrupted care for our Members.

Value by the Numbers

Driving Operational Efficiencies on Behalf of 1,300 Healthcare Facilities

Evaluated and Awarded

1,214 Contracts

Capital Equipment

Supply Agreements for biologics and patented medications

Resolved

173 Product Concerns Evaluated

828 Products for Quality

Clinical

Market Response Contracts

Pharmaceuticals

Signature and Support Services

Food and Nutrition Services

Savings and Cost Containment in Inflationary Times

Cost Recovery

HealthPRO Canada recovers the increased cost incurred by Members resulting from drug shortages.

Contract Differential Refund Service

$2.76M recovered in 2023/24

$107.1M since 2010

National Contracts Delivered in savings $161M

$61M in 2023/24 Dividends Returned $933M Since 1996

Lean Operations

Investment in running national contracting operations on behalf of the Canadian healthcare system

0.87% of contract value

116 Critical Drugs, 2 suppliers awarded for each contract

Mitigated by Having a Backup

Shortages

Welcome New Members

Shroeder Ambulatory Care

Future Commitments

Looking Forward

As we look ahead, HealthPRO Canada’s sights are set squarely on advancing system-wide solutions focused on three priorities:

Enhancing Access to Care

Driving Innovation

Improving Sustainability

Breaking through to smarter insights and a powerful, connected network.

We are on a mission to transform healthcare procurement. Our Insights+ Member and Supplier Platforms will allow our network to:

1) Access actionable intelligence easily

The platforms become centralized work hubs, enabling Members and Suppliers to take care of everything related to procurement – from contract approvals to discovering innovative products, managing supply chain disruptions, and raising product concerns – all within a user-friendly environment.

2) Gain a competitive edge with data-driven decision-making

The platform unlocks valuable insights beyond spend and savings. Gain a clear picture of market trends, potential disruptions, and promising new products – all readily available to inform strategic procurement decisions.

3) Reap the benefits of a connected ecosystem

Our global network of healthcare providers and Suppliers enables sharing of knowledge and best practices and provides access to a wider range of resources to inform procurement decisions.

Breaking Through to a More Sustainable Healthcare System

HealthPRO Canada is using responsible procurement to break through to a more sustainable healthcare system and a healthier planet.

Making an Impact through Digital Assessment Tools

Members now have access to more digital tools than ever before to help make sustainable product and Supplier decisions.

We are making an impact through our growing line of innovative Digital Impact Assessment Tools which Members are using to compare difficult-to-measure environmental impacts based on their actual purchase data.

By leading the charge, we have driven a decline in the use of desflurane gas – which for every hour of use is equivalent to a 300 km car ride – to sevoflurane which is equivalent to a mere five-kilometre journey.

Congratulations to our Member provinces leading the change in decreased use - Newfoundland with a 39% reduction, Ontario at 27%, B.C. at 23%, and the Northwest Territories eliminating its use entirely.

Sustainability Scorecard Driving Greater Commitments

Our enhanced Sustainability Scorecard is also driving greater commitments across our network. The scorecard is used across all contracts and now incorporates criteria on water stewardship, forced labour practices and Scope 3 emissions. This scorecard is another signal to Members and Suppliers alike that we are committed to supporting them in advancing their environmental and social sustainability efforts.

HealthPRO Canada is proud to assist our more than 1,300 Member facilities make environmentally responsible choices for Canadians and the planet.

Provinces decreased use of desflurane gas.

Breaking Through to a More Sustainable Healthcare System

Walking the Talk

As authentic ESG stewards, we are walking the talk on sustainability.

HealthPRO Canada has made great strides in integrating sustainability into our governance model and operations.

To underscore our commitment to social and environmental performance, transparency, and accountability, we are actively pursuing our B Corp certification – an international measure of an organization’s impact across all three aspects of ESG.

Education and Engagement

We continue to keep the conversation going on greening healthcare through education and raising awareness by hosting our third annual Sustainability Rounds event, Beyond the Buzz.

Canadian Supply Chain Stakeholders collaborated on practical tactics for a sustainable healthcare future

of participants now feel more empowered to lead sustainability efforts

Member-Led Sustainability Committee

Over the coming year, we will be working with our newly formed national, Member-Led Sustainability Committee with 20 representatives across seven provinces to drive forward sustainability solutions in healthcare.

Breaking Through to Champion System-Wide Impact

HealthPRO Canada’s national scope, partnerships, and collaborative approach puts us in a powerful leadership position.

We are breaking through to champion system-wide impact, using our unique voice and influence on issues that impact Members and Suppliers, as well as millions of Canadian patients.

Better Continuity of Care

We have taken a leadership role in accelerating the adoption of biosimilar medications, which promises to deliver significant cost savings and provide patients with high-quality treatments.

As provinces adopt biosimilar policies, HealthPRO Canada is working closely with our supplier community and aligning with the pan-Canadian Pharmaceutical Alliance agreements to ensure patients have access to their trusted biosimilars during hospital stays, while driving significant savings for the healthcare system.

Supporting Hospitals Through Unplanned Downtime

We are supporting hospitals through emerging threats, such as ransomware attacks that cause significant disruption and unplanned downtime.

Last year alone, hackers targeted more than 140 hospitals across the country, many of which resulted in lengthy periods of downtime.

Through our telepharmacy contract, HealthPRO Canada

Members have access to a cloud-based medication management software that helps minimize disruption caused by these cyberattacks.

To date, our supply agreements for biosimilars have saved Members approximately $178M

Once a downtime incident is resolved, hospitals have the ability to repopulate patient medical records accurately and efficiently.

Advocating for Patient Safety

Patient Safety

We are focused on using our voice to increase patient safety.

Through our ongoing national advocacy, we are driving a breakthrough in the number of Suppliers adopting 2D barcodes on medications.

These barcodes enable healthcare workers to manage medications safely and effectively by tracking inventory using lot, expiry date and traceability to the patient receiving the dose.

of high-risk injectable medications now have 2D barcodes, compared to just 2% three years ago 39%

We will continue to push for more on this issue and others that directly impact patient safety.

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