Yellowknife (Mar 01/06) - Providing medical supplies to hospitals is big business around the world, but the owner of a local supply company is wondering why it's not bigger in Yellowknife.

Sean Ivens, owner of Med. Ex Inc., said he wants the chance to out-bid southern firms when it comes to selling medical supplies to Stanton and the NWT's other regional health authorities. - David Ryan/NNSL photo

Sean Ivens, owner of Med. Ex Inc., said health authorities in the NWT are sole-sourcing medical supply tenders and a large portion of them are going to southern companies.

"We're getting the door closed more often than not," he said.

Med. Ex carries an inventory of between $170,000 to $250,000 in medical supplies at any given time, Ivens said his company has 95 per cent of its contracts with government health authorities. He believes his company can compete with southern firms in meeting Northern needs if given the chance.

In 2004-05, NWT regional health authorities bought more than $3.3 million in medical supplies, reports Health Minster Michael Miltenberger.

He released the information after questions were raised by Yellowknife Centre MLA Robert Hawkins during the legislative assembly session on Sept. 21, 2005.

It goes on to show more than 66 per cent of the sales go to southern suppliers with Northern companies collecting just under 34 per cent.

The procurement policy states any purchases over $5,000 dollars are to be made through formal tender.

"Some authorities appear to comply, others have misinterpreted the policy and others do not appear to comply," wrote Miltenberger.

As a result of the problems, there will be a review of the contract procedures in the all of the health authorities by the end of the fiscal year, said Dave Murray, deputy minister of Health and Social Services.

Stanton Territorial Hospital follows all government purchasing procedures, insists Donna Zaozirny, Stanton's chief executive officer.

"It would have to be a very specialized item to provide sole-sourcing," she said, adding the hospital does have some long-term contracts to purchase medical supplies.

According to the Department of Health and Social Services, Stanton currently makes 92 per cent of its purchases south of 60.