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Editor's View: Deals should factor in more than cost, savings

When news hit papers (and screens) earlier this week that Manitoba’s regional health authorities plan to contract most of the pharmacy services at more than 100 personal care homes to a single Ontario-based company that is owned by Shoppers Drug Mart
Drugs mkay

When news hit papers (and screens) earlier this week that Manitoba’s regional health authorities plan to contract most of the pharmacy services at more than 100 personal care homes to a single Ontario-based company that is owned by Shoppers Drug Mart, Flin Flon’s Pharmasave stood out as the single small-town pharmacy still contracted to serve care homes within its community. This is a small, almost unusual win for Flin Flon and a local business – Pharmasave is a member-owned cooperative. But the move by WRHA Contracting Services, acting on behalf of Manitoba regional health authorities clearly shows its priority in the matter rests on the bottom line rather than with the interests of locally owned companies.

Under different circumstances, this could have been a blow to Flin Flon. Those circumstances, though, are unclear. How, a locally-owned pharmacy in Flin Flon was able to negotiate a contract to serve the care homes in the community was unknown at press time. While there is no Shoppers’ Drug Mart in the community to take hold of the service, at one point a pharmacy out of The Pas was contracted to serve care homes in Flin Flon.

But wherever the Ontario-based company can take over pharmacy services for care homes, it will – an article in the Brandon Sun states the five-year agreement will see the company, MediSystem Pharmacy Manitoba Ltd., provide services to 8,110 beds. Flin Flon’s Pharmasave will service 66 beds. Any other pharmacy in the province that makes a significant chunk of its profit serving care homes in its vicinity will find itself struggling when the contract takes effect on Apr. 1.

It often seems that when any large organization within the Winnipeg area makes a decision for the betterment of the greater province, despite its best efforts (or not) it falls short of benefitting northern Manitoba. It’s a large, varied, province with a lot of space between communities and different communities display different needs. The decision by WRHA Contracting Services, though, will be a blow to businesses in many smaller communities across the entire province.

The decision is not without reason – a request for proposals was issued last August with the idea of obtaining more cost-effective services and delivery. And while the contract in some way contributes to the stability of jobs in some businesses, some pharmacy owners are concerned it will take away jobs in others. Additionally, profit from the contract is heading out of province rather than remaining within it and bolstering a part of the provincial economy.

Financial needs certainly should  be addressed, but the actions taken to meet those needs can have long-term effects, and those effects should be taken into consideration. Does the money saved through the contract outweigh the potential for lost jobs and the effects of unemployment to the Manitobians facing it over five years? Maybe on paper, but does it really?

If Flin Flon had a pharmacy owned by Shoppers’ Drug Mart, would that pharmacy have gotten the bid? Probably. As it stands, Pharmasave has its contract locked in for the next five years, but it could look different the next time around. There are more factors to be taken into consideration in decisions that sweep the province than who can provide the greatest savings.

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