1. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 27 - 29 October 2015Dominican Republic1

2. Outline Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 227 - 29 October 2015Dominican Republic Mission Statement Background Essential features Tendering/Contracting/Payment Benefits of pooled procurement Challenges Conclusion

3. 27 - 29 October 2015Dominican Republic3 Atlantic ocean Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS)

4. 10 OECS COUNTRIES 1 million people Regional pooled procurement of Pharmaceuticals Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 4 Antigua and Barbuda Anguilla British Virgin Islands Dominica Grenada Montserrat St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Martinique Dominican Republic27 - 29 October 2015

5. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Inspiring quote “ Even if you stumble, you’re still moving forward ” Author : unknown 527- 29 October 2015 Dominican Republic

6. OECS/PPS MISSION STATEMENT “Our mission is to maximize healthcare services of the OECS countries by pooled procurement and management of pharmaceuticals and related medical supplies.” Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 627 - 29 October 2015 Dominican Republic

7. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Dominican Republic 27 - 29 October 20157

8. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Supply chain management 827 - 29 October 2015 Dominican Republic

9. 9 “Medicines are the most cost-effective component of healthcare services.” WHO 27 – 29 October 2015Dominican Republic Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS)

10. Background Access to essential medicines is a basic human right. Medicines are a major requirement for foreign exchange. Financial constraints have rendered it difficult for OECS Governments to adequately finance medicines Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 1027 – 29 October 2015Dominican Republic

11. 27 – 29 October 2015Martinique11 Features Established in 1986 Permanent Secretariat OECS Economic Union Country-based committees Payments through Central Bank Self-financing in 1989 with 11% surcharge Shared culture, language, ethnicity, currency Restricted International bid for 840 items with 50 suppliers Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service Dominican Republic

12. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 06/13/2016 12 OECS delegates attending Tenders Committee meeting in St. Lucia, May 2015

13. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 13 27 - 29 October 2015 Dominican Republic Supplier ships directly to consignee Country receives Goods and inform PPS

14. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 27 - 29 October 2015 14 Electronic Procurement System [e-PPSS] Automatic aggregations of forecasts Online submission of requisition and POs Efficiency, fairness, transparency, accountability Dominican Republic

15. Benefits of pooled procurement Economic Economies of scale, prices,20% Monopsony, bargaining power Fixed, common price for tender period Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 27 – 29 October 201515Dominican Republic

16. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Procurement Figure 1

17. Benefits of Pooled Procurement Non- economic, value-added Enhanced quality assurance Coordinated training, research, M&E Regional cooperation and integration Harmonized formulary manual, STGs Sharing of information and experience Transparent and rational procurement, ICB Confidence-building with clients and suppliers Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 27 - 29 October 201517Dominican Republic

18. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Procurement Service level of prescribed medicines Procurement Service level of prescribed medicines Figure 2

19. Late payments Poor forecasting Managing donations Purchasing outside the cartel Small countries and purchase orders Opposition and influence by suppliers OECS/PPS challenges Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 27 – 29 October 201519Dominican Republic

20. Conclusion OECS/PPS pooled procurement has produced significant benefits for the Organization of Eastern Caribbean States (OECS) Member States. 27 – 29 October 201520 Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) Dominican Republic

21. Organisation of Eastern Caribbean States (OECS) Pharmaceutical Procurement Service (PPS) 27 - 29 October 201521Dominican Republic