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Frequently Asked Questions
CPDN is a unique programme to provide consolidated supply chain efficiencies to the customers of its member companies. It is an industry sponsored programme created to assist its customers buy more effectively. Here you will find the answers to questions on how CPDN works.
1. What is CPDN?
A: CPDN is a program that permits hospitals to consolidate the ordering and delivery of pharmaceutical products from a number of independent drug companies and to issue a single payment for those products. The CPDN Program facilitates a distribution service to its member pharmaceutical companies through a third-party logistics provider wherein member-company products are owned by the member-companies right up until the moment they are shipped to and received by the hospital.
2. Is CPDN the same as a wholesaler?
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A. No. A wholesaler buys and sells products and makes its profit through price and distribution mark-ups. CPDN is a Service Provider to Independent Drug Manufacturers. All products are sold by their respective manufacturers / distributors. CPDN does not buy or sell any products. Customers enjoy contract pricing with individual Member-Companies and there are no customer distribution fees.
3. Who owns CPDN?
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A: CPDN is a corporation incorporated under the Canada Business Corporations Act. CPDN shareholders are: AstraZeneca Canada Inc., GlaxoSmithKline Inc., Hoffmann-La Roche Ltd., Purdue Pharma and Hospira Healthcare Corporation each maintain board-member designations. CPDN is member-governed via a member-elected Executive Committee and operates in conjunction with by a small management team supported by all members who participate in guiding the direction of the program through various expert committees.
4. How many hospitals leverage the CPDN Program?
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A: In addition to several large regional hospital sites, about 600 hospitals utilize the CPDN program Canada-wide. It is estimated that this represents approximately 80% of hospitals that maintain accounts with pharmaceutical companies.
5. What services does the CPDN Program provide?
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A: The CPDN Program was developed to permit hospitals to consolidate the ordering and delivery of pharmaceutical products from a number of independent drug companies and to cut a single check for those products. The CPDN program, through a licensed third-party logistics provider, enables member companies to ship its products directly to the logistics provider who, upon receipt of consolidated company orders from hospitals, sends member company products in one consolidated delivery to each hospital. Through the logistics provider, hospitals receive one consolidated invoice and make one single payment for member companies' products purchased. CPDN program members receive hospital payments, collected by the logistics provider, directly from the logistics provider.
6. What do these services cost?
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A: CPDN member companies pay an annual membership fee in support of the CPDN member-approved annual operating budget. For all services coordinated by CPDN, to be provided by the third party logistics and technology providers, CPDN member companies are directly billed by the providers for services rendered and members make these payments directly to them.
7. How much do hospitals pay for the service?
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A: There is no direct charge to the hospitals nor are there any rebate programs to administer. The hospital simply benefits from savings derived through the CPDN direct consolidation program that ensures each hospital buys directly from each independent drug company in accordance with the current contract price on each item ordered.
8. Does the hospital have to sign a contract with CPDN?
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A: No.
9. How satisfied are CPDN's customers?
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A: CPDN conducts a hospital customer Quality of Service survey every two years and visits customers in the intervening period. These activities reveal a high degree of customer satisfaction. The most recent survey revealed that 100% of hospital respondents ranked CPDN as delivering Good to Great Value*.
10. How can I get more information about CPDN?
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A: See our Contact Us page for all our contact details.
*Source: 2007 CPDN Quality of Service Survey - Panoptika Consulting
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