NL starts screening procurement of US medical products

ST. JOHN’S – Newfoundland and Labrador Health Services says everything it buys is under the microscope as it looks for alternatives to U.S. products but adds it can’t come at the cost of affecting patients. Tony Williams (pictured), the senior director of supply chain for NLHS, says thousands of items are housed inside the health authority’s new 85,000-sq. ft warehouse in St. John’s — which he says serves as the backbone of the health system.

“We’re doing that deep dive now to say, ‘What’s under the covers, what actually is manufactured in the States versus Canadian.’ So that’s the work we’re doing now,” Williams said in a recent interview with CBC News.

“We want to make sure that any transition from a U.S. product to something else, hopefully Canadian, … [that] the healthcare provider is OK with that. We want to make sure that that achieves those high standards.”

In March, health minister John Haggie said the province is reviewing its procurement of American medical goods.

Williams said that’s easier said than done given the volume of products – and how those products are sourced.

For example, the warehouse stores multiple products from the same company, but some shipments come from Canada and others come from the U.S. as they are sourced by the contractor.

More than 200 expiring contracts with U.S. suppliers are under review, Williams said. And while there are local solutions on the table, quantity is a key facet of any dealing.

“There’s a lot of competence here to make healthcare products, [but] we want to make sure that they can also provide in the quantities that we need for the health system,” he said. “Our number one concern in all this is patient care.”

However, there are some American products that can’t be avoided, like imaging machines and parts for orthopedic surgeries like hip and knee replacements.

Christine Donaldson, president of Health Pro Canada, which bulk buys for more than 2,000 health facilities across Canada, said about a third of their contracts have ties to the U.S.

That accounts for 38 percent of medical devices imported into Canada in 2022, which represents a cost of $5.2 billion.

“[The] U.S. has been our strongest trading partner for many, many years. And to unravel that would, you know, take a long time to get into all those details,” Donaldson said.

“While we definitely stand with the government that … U.S. tariffs can’t go unanswered, it is really [something] we are exploring as far as how much we can, you know, work with Canadian partners.”

Donaldson said Health Pro Canada is advocating to ensure the trade war doesn’t increase cost for those seeking medical care or open the door to supply chain shortages.

Part of that work ensures medical equipment isn’t part of retaliatory tariffs placed by Canada on the U.S., she said.

“Canadians’ healthcare system must be protected from those unintended consequences…. Ultimately, the patient at the end of that will suffer.”