The report of consultant, IBM Healthcare, contracted under the
direction of the Ontario Ministry of Health and Long-Term Care and
other partnering provinces and territories to study the system of
pan-Canadian price negotiations, has been publicly released. The
report outlines IBM's findings in terms of key themes, as well
as recommendations for the price negotiation system in Canada from
an organizational/governance standpoint.
IBM consulted with several groups of stakeholders, including
provincial and territorial drug program branches, provincial cancer
agencies, manufacturers (brand name), industry groups (Rx&D,
BIOTECanada), regulatory bodies (the pan-Canadian Oncology Drug
Review, the Canadian Agency for Drugs and Technologies in Health,
and the Patented Medicine Prices Review Board), patient groups, and
cross-sector alliances (Canadian Generic Pharmaceutical
Association, the Canadian Association of Chain Drug Stores,
Canadian Association for Pharmacy Distribution Management, and the
Canadian Pharmacists Association).
The following common themes arose during the consultations:
Pan-Canadian Pricing Alliance (PCPA) goals are acceptable
including non-price goals;
in principle, a single pan-Canadian negotiation is better than
multiple parallel negotiations;
no current government body is seen as a "fit" for
provincial subject matter expertise key to success of the
resource constraints coping with the PCPA volume;
the PCPA is evolving and is a young alliance;
the PCPA needs to improve their communication and be more
the PCPA process is still informal and requires more
metrics are required to evaluate and benchmark the PCPA
The report includes a number of recommendations, ranging from
general recommendations through to governance and process
Some of the notable recommendations include considering changing
name from "Pan-Canadian Pricing Alliance" to
"Pan-Canadian Pharmaceutical Alliance", standardizing
templates (such as the contract known as "product listing
agreements", and letters of intent), and adopting a single
common non-disclosure agreement.
The optimal governance model in the short to medium term is
described as a "Secretariat Model", which, the report
explores, could be one of two differing models; the first would
have three full time employees split in location and specialization
across the country, with specialized roles for each. Under
the second option, the employees would be centrally organized.
They would not have specialized roles and would, as a team,
support the portfolio of drugs negotiated by PCPA. IBM
recommends the second option.
Other process recommendations include, "establishing clear
time estimates, benchmarks and targets for the PCPA process, and
publishing historical times, targets and benchmarks on the
Norton Rose Fulbright is a global legal practice. We provide
the world's pre-eminent corporations and financial institutions
with a full business law service. We have more than 3800 lawyers
based in over 50 cities across Europe, the United States, Canada,
Latin America, Asia, Australia, Africa, the Middle East and Central
Recognized for our industry focus, we are strong across all
the key industry sectors: financial institutions; energy;
infrastructure, mining and commodities; transport; technology and
innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global
business principles of quality, unity and integrity. We aim to
provide the highest possible standard of legal service in each of
our offices and to maintain that level of quality at every point of
Norton Rose Fulbright LLP, Norton Rose Fulbright Australia,
Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South
Africa (incorporated as Deneys Reitz Inc) and Fulbright &
Jaworski LLP, each of which is a separate legal entity, are members
('the Norton Rose Fulbright members') of Norton Rose
Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein
helps coordinate the activities of the Norton Rose Fulbright
members but does not itself provide legal services to
The content of this article is intended to provide a
general guide to the subject matter. Specialist advice should be
sought about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Effective September 1, 2016, the Disposition of Surplus Real Property Regulation to the Ontario Education Act was amended with the intention to reduce barriers to the formation of health and community hubs in Ontario.
Health Canada is proposing to change the way that it regulates non-prescription drugs, natural health products and cosmetics in Canada, which will now be referred to collectively as "self-care products."
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).