Canada’s E-Prescribing Initiative PrescribeIT to Cease Operations After $250 Million Investment

Marcus Wong, Economy & Markets Analyst (Toronto)
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In a significant shift for digital health services, the Canadian government has announced the discontinuation of PrescribeIT, a national e-prescribing programme that aimed to modernise prescription delivery from doctors to pharmacies. Despite pouring over $250 million into the initiative since its launch in 2017, the programme failed to achieve widespread adoption, with less than 5 per cent of prescriptions being sent electronically. The decision, made by Canada Health Infoway, reflects ongoing challenges in integrating technology within the healthcare landscape.

Programme Shutdown Due to Low Adoption Rates

Canada Health Infoway, a government-funded non-profit organisation, declared the termination of PrescribeIT, effective May 29. The initiative was intended to replace traditional methods, such as faxing prescriptions, with a more efficient digital solution. However, the reality has been starkly different, as most prescriptions continue to be processed via paper or fax. The CEO of Canada Health Infoway, Michael Green, stated that the programme would be succeeded by a new “national e-prescribing standard,” which is hoped to be embraced by other health technology providers.

Despite the initial enthusiasm, the adoption rate remained disappointingly low. According to government estimates, only a small fraction of prescriptions—less than 5 per cent—were transmitted through PrescribeIT. This lack of utilisation prompted Canada Health Infoway to explore the possibility of transferring the service to a private entity, although those efforts did not culminate before the board’s decision to discontinue the programme.

Financial Implications and Development Costs

The financial backing for PrescribeIT primarily came from the federal government, with annual expenditures hovering around $35 million in recent years. This has accumulated to over $250 million since the programme’s inception. A considerable portion of these funds was allocated to Telus Health, the subsidiary responsible for developing the e-prescribing system. Notably, Telus retains ownership rights to much of the intellectual property associated with PrescribeIT, raising questions about the future use of this technology in Canada’s healthcare framework.

Health Minister Marjorie Michel’s spokesman, Guillaume Bertrand, pointed out the absence of a “federal-provincial-territorial cost sharing model” as a critical factor in the programme’s downfall. He acknowledged the extensive efforts made by Canada Health Infoway to enhance adoption, but ultimately, the results fell short of expectations.

Looking Ahead: New Legislation on Health Data Sharing

In light of the challenges faced by PrescribeIT, the government’s focus is shifting towards Bill S-5, a newly introduced piece of legislation aimed at facilitating the sharing and access of health data. This bill seeks to establish common standards for linking health databases and addresses concerns highlighted by the federal Competition Bureau regarding data transfer restrictions that hinder healthcare providers from switching software systems.

The government hopes that by setting a more robust framework for health data exchange, it will create a more connected healthcare system that better serves patients and providers alike.

Why it Matters

The closure of PrescribeIT underscores the complexities of integrating digital solutions into Canada’s healthcare system. It highlights the need for a collaborative approach among federal, provincial, and territorial governments to ensure that technology investments translate into effective tools for healthcare delivery. As the focus shifts to new legislation for health data sharing, the outcomes of these efforts will be crucial in determining whether Canada can overcome the barriers faced by digital health initiatives and improve patient care through technology.

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