Improving Health Care Through Pro-competitive Procurement Policy is Part II of three reports published as part of the digital health care market study by the Competition Bureau. The purpose of this study was to invite Canadian policymakers to consider the ways in which public procurement policy can better foster competition and innovation in order to improve the choices offered in the health care system and the access to digital health care services across Canada.
The Bureau identified six barriers that might deter business from selling into the Canadian health care system, and, as a result, prevent Canadians from receiving the best possible health care solutions:
- The Canadian health care system is complex. The health care system is divided into multiple jurisdictions, each with different priorities, regulatory authorities, and governing statutes. This can create navigational barriers for businesses looking for opportunities.
- Lack of clarity in procurement requirements. Overly strict or poorly described requirements can inadvertently remove potential bidders from the bidding pool.
- Price as the most important priority. The focus on lowest price does not achieve the long-term value of comprehensive health care solutions.
- Risk adversity. The culture of risk aversion can cause purchasers to avoid new, innovative solutions in favour of older, more well-known solutions.
- Drawn-out procurement cycles in a fast-moving system. Technological development in health care is extremely fast. Products or services can become outdated before the procurement processes is complete.
- Overly prescriptive policies. Strict, prescriptive policies can reduce competition innovation.
The Bureau provided the following recommendations:
- Establish a national centre of expertise of innovation
in public procurement to:
- map out Canada's implementation of innovation procurement;
- provide common direction by offering education, direction, and resources to public procurers; and
- create awareness of national and international innovation and best practices in procurement.
- Remove barriers that lessen or impede competition by
ensuring that procuring entities:
- engage with and understand the vendor community;
- consider the long-term impact of products or services, not just the upfront price;
- consider the potential impact of future technology on current and future needs; and
- enable buyers to move from one vendor to another, when appropriate.
- Support procurement processes that are
innovation-friendly to ensure that:
- specifications are designed to promote innovative solutions and enable these offerings to compete with more well-known solutions;
- small and medium businesses are better able to take part in the public procurement process; and
- award criteria incorporates more than just prices.
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