Pharmaceutical Services Unit Essential Medicines Management MoH Procurement of Essential Medicines Presented by Mildred Mulenga Pharmacist, MoH 1

Pharmaceutical Services Unit Essential Medicines Management Outline: Objectives MoH Budget for EMs Procurement Cycle Factors that influence medicines prices Overview of Procurement Methods Good Pharmaceutical Procurement Practices Organization and Management of Procurement Unit 2

Pharmaceutical Services Unit Essential Medicines Management Objectives: To present the MoH Medicines Budget To describe the procurement cycle for EMs To present an overview of MoH Procurement Systems 3

Pharmaceutical Services Unit Essential Medicines Management Introduction Pharmaceutical procurement system is major determinant of availability and total health costs GRZ Medicines budget is K590 million (per capita ZMW47.20) 18.4 % of total GRZ Health budget 4

Pharmaceutical Services Unit, DCCDs National Essential Medicines Budget Objectives  ↑ availability and accessibility to all EMs and medical supplies in all health facilities 5

Pharmaceutical Services Unit, DCCDs National Essential Medicines Budget Key Strengths for 2013:  112% ↑ increase of drug budget from ZMK 270 Billion (2012) to ZMK 594 billion  248% ↑ for ARVs & 20 % increase for EMs, TB, Laboratory, RHCs kits, vaccines, Cancer, Blood Products and 540 % ↑ for medical supplies.  ZMK 120 Billion for ACT s 6

Pharmaceutical Services Unit, DCCDs 2013 Budget Key Issues:  ZMK 28 Billion for medical and surgical supplies still inadequate in view of the high cost centers of imaging, sutures, implants, and renal consumables  New products ACTs under GRZ budget need identification of reliable and consistent supply sources  Huge medicine budget require timely procurement processes to ↑ budget absorption rates and ↓ lead times 7

Pharmaceutical Services Unit, DCCDs 2013 Budget Key Implementation Plan Issues  Need for timely procurements of all supplies under Yellow Book  Regular review of EMLs to improve selection  Implement all supply chain strengthening activities to improve availability of Ems  Implement all rational use of medicines activities as planned 8

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Pharmaceutical Services Unit, DCCDs 10

Pharmaceutical Services Unit, DCCDs 11

Pharmaceutical Services Unit Essential Medicines Management 12

Pharmaceutical Services Unit Essential Medicines Management Features of Effective Procurement Process procure right medicines high quality lowest possible price timely delivery Transparent & written procedures separation of key functions Reliable payment & good financial management Product quality assurance programme Performance monitoring 13

Pharmaceutical Services Unit Essential Medicines Management MoH Procurement Cycle Review medicines selection Quantification Reconcile needs and budget Select procurement method Locate and select suppliers Specify contract terms Monitor order status Receive and check medicines Effect payment Distribute drugs Collect consumption data 14

Pharmaceutical Services Unit Essential Medicines Management Factors influencing Drug Prices & Total costs Unit Prices Purchasing models Visible & hidden costs 15

Pharmaceutical Services Unit Essential Medicines Management Overview of Procurement Methods Open Tender (ICB or NCB) Restricted Tender (closed/selective) Competitive negotiations Direct Procurement 16

Pharmaceutical Services Unit Essential Medicines Management Good Pharmaceutical Procurement Practices: Procurement by Generic name NEML Bulky procurement Formal supplier Qualification (screening) Competitive procurement Orders based on reliable needs Reliable payments 17

Pharmaceutical Services Unit Essential Medicines Management Good Pharmaceutical Procurement Prices cont. Transparency and written procedures Separation of key functions Production quality assurance (WHO certification & post marketing surveillance) Monitoring (auditing systems in place) 18

Pharmaceutical Services Unit Essential Medicines Management Organisation and Management of Procurement System for EMs at MoH Independent unit with Head PSU Chief Procurement Officer, Pharmaceuticals 19

Pharmaceutical Services Unit Essential Medicines Management Responsibilities in the Procurement Process PSU ZPPA MTCs (Medicines and Therapeutics Committees) 20

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