Thank you, Mr. Chair.
My thanks also to the members, the witnesses and the guests.
Thank you for giving us the opportunity to share with you our comments on the Government of Canada's reaction to the pandemic.
I would first like to congratulate the government for taking the following measures to date. It actively recognized the importance of maintaining international relations and the integrated global supply chain in order to make sure that infected patients have rapid access to medical technologies. That was critical. Canada played a key role in that regard, especially within the G20. It also established an action plan to mobilize industry in order to meet the challenges of the pandemic. It centralized the procurement of essential supplies and, lastly, created financial support for people who had lost their jobs in order to lighten the burden of the pandemic.
If I may, I would now like to give you a modest introduction to Medtronic Canada.
In fact, we are the largest medical technology and medical solutions company in the world. We have 90,000 employees globally, including 1,000 employees in Canada. We have a presence from coast to coast and our activities include marketing, research and development, production, education and training. The company focuses on five key areas: cardiac and vascular diseases, diabetes, minimally invasive therapies, neuroscience, and consulting services, which help healthcare systems to reduce wait times and improve the patient and caregiver experience.
Like many companies in the medical devices sector, we were significantly affected by the pandemic. First, there was an increased demand for our ventilators, pulse oxymeters, extracorporeal membrane oxygenation machines, and other devices used in respiratory care. That had two key consequences. First, we went into humanitarian mode, in the sense of delivering our devices that were in high demand to where the need was greatest. We were no longer in a conventional business mode, where we receive orders and process them on a first-come-first-served basis. In addition, we provided free access to our intellectual property in the case of a portable ventilator, so that other specialist partners, including Ventilators for Canadians, could manufacture more ventilators locally.
Lastly, our maintenance technicians and our clinical trainers had to work tirelessly to coordinate installation and maintenance and to train caregivers, particularly with regard to those ventilators. The cancellation of air routes made the task particularly difficult. Despite the crisis, our clinical teams continued to support essential surgeries all over the country.
Second, given that we provide technologies and services for more than 70 diseases, the cancellation and postponement of non-essential surgeries forced us to suspend our activities for a number of months. Despite the financial repercussions that ensued, we laid no one off because of the pandemic. Instead, we made preparations to support the resumption of surgeries by putting our experts and our products at the disposal of health care systems. We provided our expertise in clinical care pathways, in analysis, and in reducing wait times in order to redefine patient triage protocols, to optimize processes, and to shorten the time before discharge following a procedure.
Now we are at the point of considering the resumption of surgical procedures, we sincerely believe that Medtronic Canada and some members of the industry, given the international experience and the ingenuity of Canadian SMEs in our field, can be part of the solution rather than being simply restricted to the role of suppliers operating only in a purely transactional business relationship.
I would like therefore to focus my comments today on three areas. They are where we can provide tangible, proven and time-tested solutions so that procedures can be quickly resumed and the health and welfare of our fellow Canadians can be assured. These are the quickest possible transition from hospital to home, the procurement system, and the improvement of clinical care pathways. The pandemic has certainly highlighted the importance of keeping patients out of hospital once they have received appropriate care. Digital health care can certainly play a major role in that regard.
First, in a hospital setting, it allows physical distancing measures to be observed, thereby reducing the risk of infection. Moreover, this component of medical technology means that patients can be monitored at home, thereby reducing their number of hospital visits.
Clearly, health is essentially an area of provincial jurisdiction. However, the federal government has the opportunity to make better use of digital health care for the veterans and the indigenous population it serves, thereby becoming an example of health care innovation for the provinces of Canada.
Technologies that allow remote monitoring and virtual visits have been available for more than 10 years, but, because of the pandemic, we have seen those technologies adopted more quickly in the last three months than in the last 10 years. This is a tipping point and we cannot allow ourselves to turn back. Canadian companies are pioneers in this regard. According to Canada Health Infoway, before the COVID-19 pandemic, only between 10% and 20% of health care visits in Canada were done virtually. Today, that figure is closer to 60%. The federal government and each of the provincial governments have the opportunity to continue virtual visits, once the pandemic has been stamped out.
Let me illustrate all this with very specific examples. Digital health care does not just allow physical distancing, it is also an incredible tool for communicating with patients in remote locations. For example, a patient, a veteran or a member of a First Nation, who wears a pacemaker must have a check-up several times a year, with each appointment taking about 10 minutes. If that patient lives in the far north or in a remote region of our country, it can take him hours, even days, to get to the clinic. Using a form of digital technology that has existed for years and that involves an examination done remotely, reduces the risk of infection, reduces costs, and increases the efficiency of the services. Until now, that option was limited, because physicians could not bill for their services or because patients had no access to a stable Internet connection. Those two concerns can certainly be fixed with the support of the federal government.
Furthermore, in order to have access to the technologies and the solutions that help patients to obtain better care in a timely fashion, the government must focus on procurement. The pandemic actually proved beyond any doubt that procurement is not just a menial job that is simply about acquiring things. It requires men and women with a strategic vision, with a good understanding of the technologies that are needed, and with a solid foundation in new value-based procurement concepts. Those concepts, after all, have been adopted elsewhere in the world, particularly in Europe.
During the pandemic, the federal government took two steps in procurement. First, it centralized procurement, especially for ventilators and personal protective equipment. Once free from a part of that burden, hospitals and industries were therefore able to concentrate on what they do best, which is taking care of patients. Then, the government began to implement innovation policies focused on demand.
Historically, the federal government has focused on the supply of innovation rather than on the demand. For more information on this subject, you can read the article by Neil Fraser, the president of Medtronic Canada, in Longwoods. Right now, I can tell you that innovation policies focused on demand involve asking for and obtaining solutions, not just products. That is exactly what the federal government did when it launched Canada's Plan to mobilize industry to fight COVID-19.
By implementing innovation policies focused on demand, the government was beginning to follow the recommendations of the Economic Strategy Table for health and bio-sciences that the government established in 2017, with the Department of Innovation, Science and Economic Development collaborating with Health Canada. This crisis has shown us all the importance of having a more advanced manufacturing sector in Canada. I would say that the government can achieve that by re-examining the recommendations of the Economic Strategy Table for health and bio-sciences.
I would like to end with integrated health solutions.
In our search for solutions to improve our health care system, one of the greatest challenges facing the federal and provincial governments is to find a solution to eliminate the incredible delay in surgeries and diagnostic procedures, and to avoid other deaths because of those delays.
Before the virus emerged in Canada, hospitals were already operating in a complex environment. The way forward will be increasingly difficult if we do not act quickly. Hospitals also have to adapt to the new expectations of patients who have seen the advantages of virtual care, as opposed to being afraid to stay too long in a waiting room.
Despite everything, there is hope and a huge amount of optimism. Let me give you some specific examples. One is the Fraser Health Centre in British Columbia, which now conducts patient evaluations virtually, before they are admitted. In Ontario, virtual care is used for more than 50% of the patients at the Peter Munk Cardiac Centre. In New Brunswick, the Vitalité Health Network has established a specialized drive-through clinic for pacemakers, in order to reduce the growing number of patients waiting to have their cardiac devices checked.
Medtronic Canada has the expertise and the tools needed to help the government to develop those kinds of new protocols and thereby to create patient-centred health care pathways. These will help health care systems meet the new challenges and the new expectations. We are determined to deliver the results that we have promised.
On behalf of Medtronic Canada, I would like to thank you once more for making it possible for me to share my comments. I hope that this session today is just the beginning of a concerted initiative that will call on the leadership and the courage of our governments, the expertise of our academia, and the resilience, experience and ingenuity of Canadian companies and their international affiliates that have chosen to invest here in Canada. The benefits will be seen in the health of all Canadians.