Thank you, Madam Chair, and thank you for inviting me to appear before the committee.
Let me begin by telling you a bit about the Canadian Agency for Drugs and Technologies in Health, or CADTH. We are an independent, not-for-profit corporation that was established in 1989. We refer to ourselves as a health technology assessment organization, meaning that we provide evidence-based assessments of the clinical and cost effectiveness of pharmaceuticals, of diagnostics, and of medical, dental, and surgical devices and procedures. In essence, we have two broad areas of work: our drug portfolio and our non-drug or technology portfolio, which covers devices, diagnostics, and procedures.
Our operating budget is approximately $22 million annually, with the majority of the funding coming from Health Canada and all of the provinces and territories with the exception of Quebec, which has its own agency. The members or owners of CADTH are the federal, provincial, and territorial deputy ministers of health, who fund the agency. We are governed by a board of directors that reports to the deputy ministers.
Madam Chair, CADTH operates with a dual value proposition. First, we are a producer of evidence, advice, tools, and recommendations that promote the optimal use of drugs and other health technologies. We also operate as a broker of Canadian and international health technology assessment activities.
As a producer, CADTH provides a range of services to support the effective management of pharmaceuticals and other health technologies in Canada. One of our flagship programs is the common drug review, a federal-provincial-territorial process used to review the clinical and cost effectiveness of new drugs and of existing drugs with new indications. The common drug review supports coverage decisions by 18 of the 19 publicly funded drug plans in Canada. Again, Quebec has its own system in place.
As you will recall, Madam Chair, the Standing Committee on Health studied the common drug review and released a report with recommendations in December 2007.
We also do therapeutic class reviews on pharmaceuticals and conduct optimal use projects, products that are the result of expert deliberative processes that provide the evidentiary foundation for jurisdictions to promote the appropriate prescribing and utilization of drugs and other technologies.
Another valuable service offering is quick summaries of the dauntingly large and complex medical literature, our rapid response service. This service is extremely helpful in that it addresses urgent jurisdictional needs for digestible and balanced information that informs policy and practice decisions concerning drug and non-drug technologies.
We also conduct more comprehensive and complex health technology assessments when warranted. Recent examples include assessments of robotic surgery, of magnetic resonance imaging units, of pharmacologic-based therapies for smoking cessation, and medical isotopes, to name a few.
As I mentioned, in addition to being a major producer of health technology assessments, CADTH also operates as a broker, helping to create and nurture an environment for evidence generation and adoption across Canada. As a pan-Canadian body, we are well positioned to work collaboratively with health technology assessment organizations operating at the provincial level, in academia, and within hospitals.
CADTH's mandate, whether as a producer or a broker, is to support the effective management of health technologies throughout their life cycle, from innovation to obsolescence. We do not make the final decisions on what technologies will be funded by health ministries or used by patients and clinicians; however, our work informs technology-related decision-making at both the policy level and the practice level.
As an organization involved in promoting the optimal use of health technologies, we support innovation. We recognize that advances in medical devices, drugs, and procedures help to improve health care delivery and patient outcomes.
We also recognize that new does not necessarily mean better and that some new health technologies offer no or only marginal improvements, but often at a much higher cost.
We see our role and the role of health technology assessment generally as providing the evidence to ensure that health technologies add value to the system, that they contribute to improved patient outcomes and/or health system sustainability, and that they are in fact innovations and not simply cost drivers.
With jurisdictions across the country dealing with significant economic challenges, the need to extract maximum value from every health care dollar has never been greater. Specifically, CADTH provides decision-makers with the information they require to make informed decisions in health care with respect to the additional benefits from new technologies balanced against their additional costs to the health care system.
In this way, decision-makers are able to make wise choices, ensuring that with each choice increasingly scarce health dollars gain more health benefit than they forgo.
Let me provide you with a few examples, Madam Chair.
Approximately 250,000 Canadians suffer from a heart condition referred to as atrial fibrillation, an irregular heartbeat that can lead to serious medical complications such as stroke. Most patients need lifelong therapy with anticoagulants, drugs that prevent the formation of blood clots. A drug by the name of warfarin has been the mainstay of therapy for about 60 years, but new oral anticoagulants are now available that are being touted as breakthrough drugs.
A rigorous review by CADTH showed only a small potential benefit over warfarin, no long-term safety data, and highly uncertain cost-effectiveness if these drugs were used broadly as a replacement for warfarin. Our review confirmed warfarin's continued place as first-line therapy, and our committee of experts recommended that the new oral anticoagulants be funded only when warfarin should not or cannot be used.
CADTH has made significant contributions in identifying the appropriate use of drugs and other technologies used in diabetes care. I want to highlight one example, in particular. Our research on the use of test strips to measure blood glucose levels has huge implications for the health system and for patients. Test strips are a costly and widely used technology. In 2010 Canada's public and private drug plans spent more than $500 million on them. But our research shows that people with diabetes who do not use insulin do not need to routinely self-test.
Acting on these findings has the potential to free up between $450 million and $1.2 billion between 2012 and 2015. Let's be clear. That's $450 million to $1.2 billion that not only produces no health benefit, but worse, in an economy with constrained health care budgets, it also prevents funders from spending this money on innovative technologies that would produce health benefit.
Since 2009 we've been working closely with partners across Canada, including the Canadian Diabetes Association, to disseminate this information, to educate health care professionals and patients, and to support the use of test strips only in circumstances where the patient will actually benefit.
Robotic surgery, computer-assisted surgery, and robot-assisted surgery are terms for technological developments that use robotic systems to aid in surgical procedures. This technology is, however, associated with significant capital, maintenance, and operating costs.
CADTH's work on robotic surgery, completed last year, confirmed that surgical robots do lead to improvements in some short-term outcomes, such as length of hospital stay, blood loss, and transfusion rates.
Our work also showed that there are ways to make the use of this technology even more cost-effective, such as using the robot for several different kinds of surgeries, increasing surgical volumes, and having the right support systems in place. Thus, our work is supportive of this innovative technology in some circumstances.
These examples show that health technology assessment provides clear guidance for public investment in health technologies—helping decision-makers choose between different therapeutic alternatives for the benefit of patients and the health system.
Madam Chair, I'd like to leave you with three messages.
First, now more than ever policy-makers need to be confident that their health technology purchasing choices increase health benefit. Health technology assessment is vital to informing those choices.
Second, health technology assessment helps ensure that patients attain the maximum benefit from new technologies by providing guidance with respect to appropriate use.
Third, health technology assessment is supportive of technological innovation, where innovation provides value to patients, to the health system, and to taxpayers.
CADTH, and health technology assessment in general, supports the adoption of those innovative technologies that produce health benefits. However on the flip side, it also plays a role discouraging the adoption of those innovations that do not produce health benefits.
Thank you, Madam Chair, for allowing me to present to you today, and I welcome any questions you may have.