Pharma contract to save WA Health millions

The WA health system will save up to $35 million over the next 10 years, following the establishment of a new pharmaceutical contract.

Health Support Services (HSS) — the WA Government agency responsible for procurement and supply for WA public hospitals — recently awarded a $290 million whole-of-health contract 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 that 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,” Thompson said.

“It also supports local manufacturing and jobs as these medicines will be produced in facilities located in the Perth metropolitan area.”

The contract is one of 175 contracts worth $2.9 billion managed by HSS on behalf of the WA health system.

Image credit: ©stock.adobe.com/au/ALDECAstudio