Here’s a reform that won’t cost money: it will save money. The reform is public tender for technical aids and assistive devices. Public tendering will save scarce government funds and provide assistance to more Islanders living with disabilities.
The margins on wheelchairs walkers and other devices are quite high. In fact the margins can exceed 40%, especially where there is no or limited competition.
The government could save 20% or more on tendered purchases. Based on spending $4.5 million a year on these devices, the savings are almost equal to last year’s $1 million cutback.
The government tenders for most things from computers to paper clips. Why don’t they tender for wheelchairs, hearing aids and other assistive devices? Probably because the DSP is relatively new.
While the exact fitting of these devices is unique to each person, the actual devices are not. More than 80% of the assistive devices purchased by the DSP can grouped into a few standard items. DSP has the statistics on these purchases and the actual devices can be easily determined. While each device needs to be individualized, the DSP would create a standing offer form that has the best price negotiated in advance.
Margins on medical devices are high, especially where there is limited competition. Currently, Harding Medical is the primary supplier of these devices in Charlottetown. They are owned by IMP Group who own 5 Harding Medical locations plus others in Atlantic Canada. We are at a stage of almost zero competition. When businesses can charge more they will: when competition enters the field they charge less. The Government needs to level the playing field by creating the competition.
Lack of public tendering could be costing the Province $1 million a year in wasted spending. Its time to change that and use the money to fund needs of Islanders living with disabilities.
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