Centralised Pharmaceutical Procurement: Learnings from Six European Countries

Vogler, Sabine; Bauer, Eveli; Habimana, Katharina

doi:10.1007/s40258-022-00729-w

Cited by 10 publications

(5 citation statements)

References 22 publications

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“…Public spending on pharmaceuticals is growing at a rate that outpaces the inflation rate for numerous reasons, such as the high incidence rates of chronic diseases (e.g., diabetes, dyslipidemia, and hypertension), the reluctance of some health organizations to switch to generic medications, and market entry of innovative and expensive therapies ( AlRuthia et al, 2021 ). Therefore, the centralized procurement of pharmaceuticals for all public sectors has been enforced in the past five to seven years to strengthen the bargaining power of the public health sector, receive lower prices, improve governance, and ensure access and equity ( Baldi and Vannoni, 2017 , AlRuthia et al, 2021 , Wang et al, 2021 , Vogler et al, 2022 ). The procurement is performed through a single body.…”

Section: Discussionmentioning

confidence: 99%

“…As a result, NUPCO is responsible for procuring, warehousing, and distributing all medicines in the public sector. Nonetheless, centralized procurement has also been associated with potentially limiting supply-side competition and medicine shortages, according to recent studies ( Vogler et al, 2022 ). Therefore, we aimed to explore whether the national centralized pharmaceutical procurement has contributed to medicine shortages in Saudi Arabia since it became mandatory for all public health entities to secure their needs of all pharmaceutical and medical supplies through a single national procurer ( Alamoudi et al, 2022 ).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Local causes of essential medicines shortages from the perspective of supply chain professionals in Saudi Arabia

AlRuthia¹,

Almutiri²,

Almutairi³

et al. 2023

Saudi Pharmaceutical Journal

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Local causes of essential medicines shortages from the perspective of supply chain professionals in Saudi Arabia

AlRuthia¹,

Almutiri²,

Almutairi³

et al. 2023

Saudi Pharmaceutical Journal

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“…(a) The EU countries implementing the "centralized" healthcare procurement system are Austria (28)(29)(30), Bulgaria (29,(31)(32)(33), Cyprus (17,34,35), Denmark (17,(36)(37)(38)(39), Ireland (29,(40)(41)(42), Latvia (29,(43)(44)(45)(46), Lithuania (29,47,48), Luxembourg (29,(49)(50)(51), Malta (29,52,53), Portugal (17,29,(54)(55)(56)(57)(58), Romania (29,(59)(60)(61), Slovenia (29,62,63) and Spain (64-67). There is no tendency toward decentralization in the above countries.…”

Section: Discussion On Healthcare Procurement Systems In the European...mentioning

confidence: 99%

“…Centralized procurement and competitive tendering can achieve cost savings across multiple sectors by reaping economies of scale and improved purchasing power. Moreover, the benefits are not only lower prices and savings but also they include improved transparency and governance such as enhanced equity ( 17 ). According to Coe centralization of procurement procedures is necessary, both to prevent waste and inefficiency, and to establish control systems ( 18 ).…”

Section: The Three Types Of Healthcare Procurement Systems Based On T...mentioning

confidence: 99%

Hybrid model: a promising type of public procurement in the healthcare sector of the European Union

Geropoulos,

Voultsos,

Geropoulos

et al. 2024

Front. Public Health

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The management of health supplies in public hospitals has been a major concern of national and European institutions over time, often being a field of reforms and regulatory interventions. Health procurement systems constitute complex decision-making and supply chain management mechanisms of public hospitals, involving suppliers, health providers, administrators and political bodies. Due to this complexity, the first important decision to be taken when designing a procurement system, concerns the degree of centralization, namely to what extent the decision-making power on the healthcare procurement (what, how and when) will be transferred either to a central public authority established for this purpose, or to the competent local authorities. In this perspective, we attempt to analyse the types of public procurement in the healthcare sector of the European Union, in terms of degree of centralization. Employing a narrative approach that summarizes recent interdisciplinary literature, this perspective finds that the healthcare procurement systems of the EU Member States, based on the degree of centralization, are categorized into three types of organizational structures: Centralized, Decentralized and Hybrid procurement. Each structure offers advantages and disadvantages for health systems. According to this perspective, a combination of centralized and decentralized purchases of medical supplies represents a promising hybrid model of healthcare procurement organization by bringing the benefits of two methods together.

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“…The tendering concept will not deal with legal aspects, nevertheless, the tender design must adhere to the applicable law on public procurement ( 20 ). The tendering concept will not deal with the organisational aspects of the design and running of tenders, though these are prerequisites for successful tenders ( 29 ).…”

Section: Conceptualising Multi-winner Tendersmentioning

confidence: 99%

A concept for multi-winner tenders for medicinal products with balancing between efficient prices, long-term competition and sustainability of supply

Németh,

Mágó,

Kaló

et al. 2023

Front. Med.

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Achieving price efficiency via tenders, the sustainability of competition, and the prevention of shortages are hot topics in the debates about shaping the pharmaceutical markets. Single-winner tenders receive growing criticism for concentrating on achieving low prices at the expense of the long-term maintenance of a competitive pharmaceutical industry, the security of continuous supply, and disregarding the therapeutic needs of patient populations with specific conditions. This paper aims at drafting a concept to assist the design of multi-winner tenders for medicinal products with a focus on supply and sales guarantees, price efficiency, and equity in access. The concept shall be generally applicable to all kinds of medicinal products including generics, biosimilars, and on-patent products in the out- and in-patient sector. Principles for multi-winner tenders for medicinal products are set and a number of delimitations are made in order to get rid of factors that prevent clairvoyance amid the various pricing and reimbursement systems when designing a concept. The steps to plan and implement a multi-winner tendering procedure are drafted on the basis of the defined principles. The tender should consist of planning, bidding, preparation, sales, and evaluation phases. Pharmaceutical companies shall make bids with price and quantity pairs, which shall be ranked by prices and if applicable then taking into account other factors. The tenderer shall predefine market shares to the various places of the ranking. A double ceiling shall be applicable for the sales of the winners: their sales must not exceed their quantity offer and the predefined market share applicable to their place in the ranking. The implementation of the concept will require the careful adjustment of the tender conditions to the specificities of the pharmaceutical market concerned on the one hand and to the local pricing and reimbursement system on the other hand.

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Centralised Pharmaceutical Procurement: Learnings from Six European Countries

Cited by 10 publications

References 22 publications

Local causes of essential medicines shortages from the perspective of supply chain professionals in Saudi Arabia

Local causes of essential medicines shortages from the perspective of supply chain professionals in Saudi Arabia

Hybrid model: a promising type of public procurement in the healthcare sector of the European Union

A concept for multi-winner tenders for medicinal products with balancing between efficient prices, long-term competition and sustainability of supply

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