Bayer Canada has established a new division called Bayer Healthcare Division, a managed healthcare organization that will market its services to employers.

Bayer has hired Toronto ad agency, The Gingko Group to handle its advertising.

Managed healthcare companies work with employers to help them save money on the healthcare benefit packages they have in place for employees by setting consistent standards of care.

These types of companies have been used in the u.s. for some time but are fairly new to Canada.

One example is FoxMeyer Canada, a preferred provider which has been in this country for nearly two years.

FoxMeyer controls costs by using preferred suppliers, such as pharmacies which charge lower prescription service fees and by encouraging the use of generic rather than prescription medications.

FoxMeyer Health of Dallas, Tex., a major u.s. pharmaceutical distributor and preferred provider organization, is a minority shareholder in the Canadian company.