Central Healthcare Services is set to exclusively service the Department of Defence with pharmaceutical supplies
Sigma has announced that its subsidiary, Central Healthcare Services, will start servicing the Commonwealth Department exclusively in an agreement commencing June 2017. The agreement is for an initial five-year period with the option for two extensions of two years.
The Department is one of Australia’s largest employers.
The initial phase of the agreement sets the base for CHS to provide pharmaceutical supplies to Commonwealth-nominated distribution points across Australia, with the option for the Department to extend the scope of the agreement.
“We are excited to commence this long-term partnership with the Department of Defence,” says Jeff Sells, executive general manager Business Development and Strategy, who also oversees the CHS business.
“Over the past two years, CHS has expanded its distribution network to have a national footprint.
“This investment has given us a fantastic platform to achieve growth through extended service agreements such as this one.
“Clearly the Defence personnel provide critical support to the Australian community, so CHS is really proud to support their healthcare needs.”
With existing facilities in Victoria, NSW and Queensland, the recent addition of a new distribution centre in Western Australia enables CHS to provide a national distribution service, it says.
“We now have a national footprint that will support DoD, community pharmacy, hospital pharmacy and our third party logistics customers,” Mr Sells says.
“This is another great step in implementing our business strategy to diversify our earnings away from PBS and move to a more holistic healthcare model.”
As there are a number of initial setup costs, the new agreement is not expected to make a meaningful contribution to the FY2018 results for Sigma Healthcare, it says.