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NLIS 2
July 11, 2006
(Health and Community Services)
 

Government announces successful proponent for Claims Adjudication
System for the Newfoundland and Labrador Prescription Drug Program

Health and Community Services Minister Tom Osborne today announced that xwave has been selected as the successful proponent for the development of the On-Line Real-Time Claims Adjudication and Management System for the Newfoundland and Labrador Prescription Drug Program (NLPDP).

"Our government remains committed to establishing an On-Line Real-Time Adjudication System for the Newfoundland and Labrador Prescription Drug Program and we are moving forward towards its implementation," said Minister Osborne. "This investment will result in a new and enhanced computerized system that will connect all provincial pharmacies to the NLPDP adjudication system in real time."

The new on-line, real-time system will improve service delivery for pharmacists and NLPDP beneficiaries, by allowing drug claims under the NLPDP to be adjudicated as soon as the pharmacist enters the prescription in their computer. This means that any issues with the claim are identified and reported immediately to the pharmacist, rather than after the fact, during the auditing process.

Approximately $13 million has been allocated for the development, implementation and on-going operation of the system and the associated services. xwave, an Aliant company, was chosen as the successful proponent for the new system, following an RFP process which closed on May 1, 2006. Negotiations are underway with xwave towards a signed contract, anticipated by the end of July. However, to facilitate timely implementation of the new system, the Department of Health and Community Services and xwave have signed an interim agreement to enable xwave to begin work on the development of the system immediately.

"A program such as the NLPDP plays a vital role in the lives of many people in this province," said June Turpin, xwave's regional director, Newfoundland and Labrador. "Having supported the operations of the NLPDP for the past 12 years, xwave is pleased to continue in this role, supporting the Department of Health and Community Services as it transforms the program to provide improved, additional, and cost-effective services to citizens of the province."

In his 2005 report, the Auditor General identified the need for an on-line, real-time adjudication system for the NLPDP so that the province could take advantage of lower prices for drugs with equal health benefits of more expensive drugs. The new system will facilitate this objective, as it will contain improved data analysis and reporting systems to plan and manage the program in a timely and cost-efficient manner.

In addition to enhancing the functionality of the NLPDP, the implementation of the On-Line Real-time Adjudication System is also necessary for the expansion of the NLPDP. In Budget 2006, government announced an investment of $32.8 million annually to expand the NLPDP, providing coverage for an additional 97,000 people in the province. This brings the total number of people receiving some form of provincial drug coverage to approximately 200,000. The expansion will be launched in January 2007, at which time the real-time adjudication system will be fully functional.

Minister Osborne added, "Ultimately, the new system will enable the Department of Health and Community Services to implement new policies and programs for the NLPDP that will improve public health, improve service delivery, reduce unnecessary and inappropriate expenditures, and curtail rising costs."

Media contact: Tansy Mundon, Communications, (709) 729-1377, 685-1741, tansymundon@gov.nl.ca

2006 07 11                                   9:45 a.m.


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