Atlantic generic drug strategy could mean 'significant savings'

The Atlantic provinces will cooperate on the bulk purchasing of generic drugs, say the region's health ministers, who met Thursday in Charlottetown, but there were  few specifics about how this would happen.

Host, P.E.I.'s Health Minister Doug Currie, cast a very upbeat description of the meeting.

"It was actually a very energizing, exciting discussion," he said. "Clearly identified today that there's more opportunity on the pharmaceutical side to do a better job and if you look at the bulk purchasing powers we have as a region and with other jurisdictions, we are doing a level of it."

The Atlantic provinces are working on a bulk purchasing strategy for generic drugs, for both public and private drug plans, which could save the region $100 million a year.

Competitive bids a better deal?

"Innovation requires meaningful collaboration and I'm thrilled to see that Atlantic Canadian governments are willing to work together," said Newfoundland and Labrador's Health Minister Steve Kent, who, along with New Brunswick's Hugh Flemming, are newly elected and have only been in their posts a matter of week.

"If we can increase generic drug usage in this region, I think that will represent a significant savings to all four Atlantic provinces," added Kent.

With two million people in the region and a combined health budget of $10 billion, the health ministers say they have to find savings.

"Maybe we can collaborate as the four Atlantic provinces in trying to look at harmonizing some of our drug plans," said New Brunswick Health Minister Victor Boudreau.

The four provinces have agreed to purchase generic drugs at 18 per cent of the cost of brand-name drugs, but some critics say they might get a better deal if they went to a competitive bid process.

"That could, in fact, be one of those areas in which we will move forward and take action," said Nova Scotia Health Minister Leo Glavine.

The ministers will examine the strategy and prepare a report within a year, Glavine says.