MAY 30, 2005
VOLUME 2 NO. 10
 

A corporate-government partnership for
healthcare innovation


Joanne O'Gorman is an innovation broker. As Director of the Edmonton Capital Health Authority's Office for Health Innovation, companies come to her to get their products and services developed and assessed within the Health Authority. Success, for Ms O'Gorman, is better care and productivity in healthcare plus — and this is key — a product ready to be commercialized and marketed in Canada and abroad. Her work exemplifies a new concept of healthcare that aims not only to improve health, but also to generate wealth for Canadians.

The idea was first bandied about four years ago by Dr Henry Friesen, current Chair of Genome Canada, and here's its logic: If we are going to spend the huge sums that we do providing healthcare for Canadians, why can't that spending double as an investment in Canada's health industrial sector.

Dr Friesen and Ms O'Gorman were two of about 120 high-level representatives from government, health industries, research, provider and investment communities who gathered at an invitational meeting hosted by the Public Policy Forum on April 26-27th in Gatineau. The point of this powwow was to put this partnership plan into action.

POWER BROKERS
Senator Yves Morin chaired the meeting along with former Premier of Manitoba Gary Filmon, who's been touring the country meeting with stakeholders since Jerry McDole (then-CEO of Astra Zeneca) approached him about creating a partnership along the lines of Dr Friesen's vision. The April meeting was all about building a consensus and deciding how to move forward.

Mr Filmon proposed a board of directors co-chaired by one government and one industry appointee. The other boardmembers would be drawn from federal and provincial Ministries of Industry and Health, health industries and their associations, universities and the Canadian Institutes of Health Research, venture capital and private equity associations. The Prime Minister and Chair of the Council of the Federation would be in on the action.

WE'RE TALKING REAL MONEY
After a first day of presentations and group discussion, there was consensus on the need to move forward with some urgency to take advantage of the opportunity at hand. Every year governments in Canada spend $132 billion on healthcare and $2 billion on health research, according to Dr Friesen, yet Canada has a huge and growing trade deficit in health products. He estimates that Canada's reliance on health products from elsewhere creates more than 60,000 jobs a year in other countries.

"Research and development in pharmaceuticals dropped in absolute terms this year for the first time in 12 years," says Andre Marcheterre, President and CEO of Merck Frosst Canada. He feels changes to the Patent Act in the 1990s helped matters some, but the country still needs to take measures to improve competitiveness in the business climate — or other countries will leave us behind.

Meeting participants agreed that the status quo — where Canadian researchers make a discovery only to have foreign companies commercialize it so we can buy it back — is a mess. They also agreed we need this proposed partnership to better align health and economic policies in Canada to propose regulatory and legislative reforms that support innovation and to coordinate ways of addressing commercialization opportunities.

Far from a threat to public healthcare, the initiative seeks to put the public system to work for private suppliers as a breeding and testing ground for innovative products and processes. "We don't want to mix up the privatization agenda and this one," says Canadian Healthcare Association President Sharon Solzberg-Gray, who attended the meeting, "but rather see the health system as a positive driver and not just a drain."

AND THE FRONT LINE?
At the meeting, clinical trials keep coming up as a major avenue for development in Canada that could bring money into our health science centres, attract investment from major healthcare industries and even improve the care provided by our public system. It is also an area that cannot be pursued without the involvement of MDs and other caregivers, who were conspicuously absent from Mr Filmon's proposed board.

The Canadian Medical Association (CMA) was one of the sponsors of the meeting, but association representatives expressed some question about how providers fit into the project. Marcel Saulnier, Director of Policy Research at the CMA, wonders if health system capacity would need expansion in order to meet the innovation challenge. Ian Shugart, Senior Deputy Minister of Health Policy at Health Canada, says, "those in the health system are so preoccupied with managing that looking up to see what would possibly help is difficult."

"Being a front-line provider, I'm always suspicious when a healthcare project is discussed without enough providers in the room," says CMA president Dr Albert Schumacher. Nonetheless, he believes the CMA will remain involved in the partnership because it has much at stake in promoting healthcare innovation. "Physicians are feeling the lack of new technology in the care they can provide. Everybody else gets it licensed sooner," he says. "We're in this news blackout about new great things elsewhere and there's no point in learning about it if somebody isn't going to pay for it."

As a small steering committee composed of the idea's original proponents — including Senator Morin, Dr Friesen, Mr Filmon and Dr Aubrey Tingle — distills the meeting discussion into a proposed Charter to present to provincial and federal ministers in August, providers should figure more prominently. "What started out looking like an industry partnership at the beginning," says Ms Sholzberg-Gray, "changed over the course of the meeting to end up with a consensus that all parties have to be involved."

 

 

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