As a result of the decentralization of health services, the province of Pangasinan in the Philippines was given the responsibility of managing 14 provincial and district hospitals. A major problem that was identified was the nonavailability of essential drugs in these hospitals. A review of the drug management system showed that the hospitals were individually procuring their drugs and were paying widely varied prices for similar drug items. Other related problems included poor quantification of drug needs, poor prioritization of drug purchases, and inappropriate procurement of drugs not included in the National Drug Formulary. To address these problems, a pooled procurement system involving all 14 hospitals was introduced. As part of this system: 1. All hospitals submitted their drug requirements based on needs, the National Drug Formulary, and recommendations of each hospital’s therapeutics committee. 2. The provincial government issued a drug tender on behalf of all the hospitals. 3. Delivery of drug items was made directly to the hospital by the vendor on a quarterly basis. To ensure drug efficacy and safety, only drug suppliers accredited by the Philippines Bureau of Food and Drugs and having the required product certification were allowed to participate in the tender. A review of the results of the pooled procurement system showed that the prices of drugs were reduced by an average of 54 percent. In addition, the revitalization of the therapeutics committees improved compliance with drug therapeutic guidelines.
Learning Objectives:
Keywords: Medicine, Cost Issues
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: Management Sciences for Health
I have a significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.
Relationship: Employment