NEWS ADVISORY

FOR INFORMATION
JULY 1, 2008

Medbuy awards Pharmacy contracts that will save Members more than $90 million over the next three years

Medbuy Members will realize significant cost savings on pharmaceutical products as a result of more than 58 recently awarded contracts that were a part of one of the largest sourcing initiatives in Medbuy's nearly 20-year history.

These Pharmacy contracts, for a wide range of product categories such as injectable, oral and topical medications, will save Member hospitals and healthcare organizations more than $90 million over the 39-month term - a considerable savings compared to previous contracts.

This sourcing initiative was particularly complex and encompassed thousands of line items representing nearly 80 percent of product purchases in Medbuy's Pharmacy program (or 25 percent of the total SKUs Medbuy has on contract).

"There are several reasons why this process was so successful for our Members," says John Moynihan, Medbuy's previous Contracting Director, Pharmacy. "We were able to drive competitive pricing and considerable savings given the huge volume of products included in this RFP. At the same time, we were able to bring together several stakeholders within Member facilities to diligently evaluate the cost and clinical implications of all supplier proposals."

"In the process, Medbuy was also able to contract for more products within the Pharmacy program."

The Pharmacy sourcing initiative was also notable for the fact that it was the first event run through the Sourcing and Contract Management applications in Medbuy's new mSourcing Spend Management System - multiple software applications that strengthen and support the contracting process from start to finish.

"This particular contract award process showcased the advancements we've made in automating and refining the contracting process," notes Rick Cochrane, immediate Past President and CEO of Medbuy. "Not only has Medbuy delivered tremendous value for its Members, but we've also realized new operating efficiencies with unique web-based tools that offer a new approach to establishing and managing contracts."

The new Pharmacy contracts came into effect on July 1, 2008.

For further information, please contact Lesley Cornelius, Director, Business Development and Marketing at lcornelius@medbuy.ca or (519) 652-1688 ext. 166.