the benefits of joint procurement

ORGANISATION OF EASTERN CARIBBEAN STATES

Pharmaceutical Procurement Service (PPS)

The Benefits of Joint Procurement:

hardware, software, and pharmaceuticals

9 September 2009, CDB W/Shop

St. Lucia’s Pigeon Island

9 September 2009 2

Outline

9 September 2009 3

• Organogram

• Vision

• Justification

• Milestones

• Institutional arrangement

• Critical success factors

• Benefits of joint procurement

Organogram

9 September 2009 4

OECS Director General

Dr. Len Ishmael

OECS Social and Sustainable

Development Division (SSDD)

Director

Dr. James Fletcher

OECS/PPS

Staff

Mission

9 September 2009 5

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.”

OECS Member States

9 September 2009 6

Antigua and Barbuda

Anguilla

British Virgin Islands

Dominica

Grenada

Montserrat

St. Kitts and Nevis

St. Lucia

St. Vincent and the Grenadines

570K people

Background

9 September 2009 7

Financial constraints have made it difficult

for OECS countries to adequately finance

supply of medicines to health institutions.

Justification

9 September 2009 8

Efficient procurement provides greatest

opportunity for cost-savings.

Selection

ProcurementUse

Distribution

Managing

Drug Supply

Milestones

9 September 2009 10

1986 - ECDS established in St. Lucia

1990 - Attained self-financing status

1995 - Authority renamed OECS/PPS

2004 - Topped ECM$10 in purchases

2009 - Spiralled to M$21 procurement

Achieved annual cost savings of approx. 30%

Annual Purchases

9 September 2009 11

Institutional Arrangements

9 September 2009 12

• Accession

• Secession

• Legal agreement

• Full judicial personality

• ECCB is payments’ agency

Critical Success Factors (1)

9 September 2009 13

•Reliable MIS

•Written, transparent procedures

•Permanent Secretariat with professionals

•International Competitive Bidding (ICB)

Critical Success Factors (2)

9 September 2009 14

• Formal, signed agreements

• Existing umbrella organization

• OECS participating committees

• High-level Political commitment

• Common ,stable, currency and Central Bank

Procurement

9 September 2009 15

700 Product portfolio

• Contraceptives

• Pharmaceuticals

• Medical Supplies

• Radiological products

Ordering Process

9 September 2009 16

Client submit

requisition

PPS place

order

Supplier ship

to consigneeClient submit

GRN to PPS

Benefits of joint procurement

9 September 2009 17

• Monopsony, strong bargaining power

• Sharing of information & experience

• Regional & functional cooperation

• Enhanced quality control strtegies

• Coodinated training in managing meds

• Increased access to essential medicines


9 September 2009 18

• Common Regional Formulary

• Continuing Medical Education

• Drug Utilization Review studies

Medicine Formulary

9 September 2009 19

7th edition of OECS medicine

formulary listing 550 medicines to be

be published in September 2009.

Availability of Medicines

9 September 2009 20

Challenges

9 September 2009 21

• Late payments

• Managing donations

• Purchasing outside the cartel

• Opposition and influence by suppliers

• Countries poor forecasting and tardy response


9 September 2009 22

• 1k PSA

• 8k supplier

• US$M35 savings

Hardware and software –

Romania e-gov’t Project


9 September 2009 23

• 50 employees

• Technical savvy

• Strong political will

• Network of 3,000 computers

• Operational information society nucleus


Cape Verde e-gov’t Project


9 September 2009 24

• Increased transparency

• Enhanced tax collection

• Reduced fraud and corruption

• Reduced unit cost of public service delivery


Cape Verde e-gov’t Project

Benefits of joint Regional integration

9 September 2009 25

• 6 OECS governments

• World Bank- financed

• ICT for public sector modernisation

legal,financial management,e-procurement

OECS E-GRIP Project


9 September 2009 26

Joint procurement of hardware,software,medicines:

A cost-effective strategy ICT modernisation

Take home message

9 September 2009 27

Thank You

Head of Unit

[email protected]

[email protected]

mailto:[email protected]

mailto:[email protected]

the benefits of joint procurement

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