MPSC’s IV Solutions Contract Award Supports Domestic Production of Critical Medication
Since March 2019, Plexxus and Mohawk Medbuy – two Ontario-based, not-for-profit health care supply chain service organizations, have been working jointly as MPSC (MMC Plexxus Sourcing Collaborative) to undertake large-scale sourcing initiatives. Hospitals supported by MPSC account for almost 90% of the acute care beds in Ontario and 100% in New Brunswick and Prince Edward Island.
One of MPSC’s largest sourcing initiatives to date has been for eight categories of Intravenous (IV), Irrigation and Pourable Irrigation Solutions. These products represent an essential component of health care delivery, with an estimated 90% of hospitalized patients receiving some form of IV therapy. After a competitive RFP process, the contract has been awarded to Baxter Canada – pioneers of the first commercially produced intravenous solutions.
“This contract demonstrates the value and efficiency of collaboration in procurement across provinces,” said Tony DiEmanuele, President and CEO of Mohawk Medbuy. “We had significant participation in this initiative – over 450 hospitals and health care providers across three provinces, with many others to join when their current contracts expire. That was all accomplished with one agreement.”
The new contract represents approximately $40 million in annual spend on products that are ubiquitous for patient care as components of medication infusion and for hydration, resuscitation and irrigation.
“Bringing together this many health care organizations on a contract for these essential products highlights the strength of our teams and process,” said Plexxus President and CEO, David Yundt. “We achieved a positive outcome that supports quality health care and also reinforces our domestic supply chain and economy.”
Baxter Canada, who was awarded the multi-year contract, operates a manufacturing facility for IV solutions in Alliston, Ontario. The site employs over 600 people, including 70 new manufacturing jobs that have been added since 2019. The company will be making $20M in improvements to the facility this year.
“We’re pleased that Baxter is the selected partner for intravenous and pour bottle solutions through this Agreement with MPSC,” added James Teaff, President and General Manager of Baxter Canada. “As the country’s only large-scale manufacturer of intravenous and dialysis solutions, we are proud that we are able to produce these life-saving products right here in Canada, for Canada.”
To build a more resilient and flexible supply chain, Baxter reviewed and updated the inventory management and site preparedness plans for every site supplying Canada. Baxter has invested $1 billion in their manufacturing network over the past several years. Part of that investment was directed to adding new capabilities for key Canadian products at Baxter plants outside of Puerto Rico. This manufacturing redundancy gives the company the flexibility to respond more quickly should there be a temporary impact at one facility.