Drug Shortages: Canadian Strategies for a Complex Global Problem

Abstract

Drug shortages are a complex global problem. Increasingly intricate global supply chains, stricter drug regulations and current economic conditions, have exposed Canadians to greater shortage risks. That Canada represents only a limited share of the global drug market means that all stakeholders—hospitals, shared service organizations, group purchasing organizations, supplier networks and governments—must coordinate their efforts to find an effective market solution to recurring shortages. Based on ongoing collaboration between Health PRO Procurement Services Inc. and multi-level national healthcare stakeholders, this article examines the primary causes of drug shortages in Canada, with recommendations for ensuring reliable sources of supply. Group Purchasing Organizations (GPOs) are vitally important in this regard. By building contracting processes that support market competition, GPOs can improve the reliability of supply for medically-necessary products, while creating a more flexible procurement strategy that supports competition, leverages innovation, creates value and adapts more readily to volatile global markets and changing patient needs.