New pharmaceutical contracts saving WA Health millions
Health Support Services (HSS), the WA Government agency responsible for procurement and supply for WA public hospitals, has successfully awarded a new pharmaceutical contract that will save the WA health system up to $35 million over the next 10 years.
The whole-of-Health contract, worth $290 million, was recently awarded to Baxter Healthcare and local Western Australian company PureIV, to manufacture specially prepared medication and supplies used to treat patients with cancers, rheumatoid arthritis and multiple sclerosis.
The contract replaces various separate agreements between pharmaceutical companies and individual hospitals to provide consistent pricing across the WA health system for aseptically compounded cytotoxic and chemotherapy drugs, antibiotics and intravenous feeding solutions.
Baxter’s Canning Vale facility produces more than 200,000 units of critical medical products for patients in local, regional and remote locations across WA, many of which need to be dispatched to patients within hours of production.
Pure IV, located in Shenton Park, combines a purpose-built manufacturing facility with a pharmacy structure which enables dispensing and supply direct to patients.
HSS Chief Procurement Officer Mark Thompson said the new contract delivers better value for the WA health system.
“A single consolidated contract gives us greater oversight of these products while ensuring continuity of supply for our public hospitals,” Mark said.
“It also supports local manufacturing and jobs as these medicines will be produced in facilities located in the Perth metropolitan area.”
WA Country Health Service Chief Pharmacist Meeghan Clay, who contributed significantly to the development and implementation of the contract, said this provides greater assurance for access to a wide range of services.
“This is particularly crucial for country hospitals and smaller hospitals in the metropolitan area as it allows health services to provide care to patients closer to their homes,” Meeghan said.
This contract is one of 175 contracts worth $2.9 billion managed by HSS on behalf of the WA health system.