Price Determinants of the Tendering Process for Pharmaceuticals in the Cyprus Market

Petrou, Panagiotis; Talias, Μichael A.

doi:10.1016/j.vhri.2015.09.001

Cited by 10 publications

(17 citation statements)

References 29 publications

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“…However, there is little ‘European’ agreement on best practices for tendering, each tender system is a ‘homebrew’ by the individual member state institutions [ 19 ]. Generally, the focus of the studies is on price management rather than health or other outcomes [ 20 , 21 ] and too little attention is paid to monitoring the success of the policies [ 22 ].…”

Section: Resultsmentioning

confidence: 99%

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Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage

Maniadakis

Holtorf²,

Corrêa³

et al. 2018

Appl Health Econ Health Policy

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Policy makers in countries, aiming to build and expand their healthcare systems and coverage, need effective procedures to support the most efficient use of limited financial resources. Tendering is commonly deployed to minimize and fix the purchasing price for the contract duration, especially for off-patent pharmaceuticals. While tenders can reduce acquisition costs, they may also expose the healthcare systems to risks including drug shortages, quality trade-offs, and ultimately, compromised patient health outcomes. Careful planning is therefore required. The effectiveness and impact of tendering were examined in different healthcare settings to establish good tender practices and to develop guidance for tender stakeholders in countries with expanding healthcare coverage for the effective conduct. The literature was reviewed for tender practices and outcomes in all countries, and tender experts from one multi-national pharmaceutical company in 17 countries with expanding healthcare coverage were surveyed on current tender practices. Tendering is a common practice for multisource pharmaceuticals in most countries worldwide. However, countries with expanding healthcare coverage specifically are vulnerable to the risks of defective tendering practices. Risk factors include non-transparent tender practices, a lack of consistency, unclear tender award criteria, a focus on lowest price only, single-winner tendering, and generally, a lack of impact monitoring. If well planned, managed, and conducted, tenders can be advantageous. Countries with expanding healthcare coverage should approach tenders strategically to achieve the desired improvements in healthcare. The good tender practices derived from this study may guide policy makers and purchasers in countries with expanding healthcare coverage on how to expand access to healthcare at an affordable cost. These include the use of multiple selection criteria and performance monitoring. Plain Language Summary Decision makers in countries aiming to expand their healthcare systems must best use the limited money available for healthcare. Tendering is commonly deployed for pharmaceuticals produced by multiple manufacturers (so-called multisource pharmaceuticals), to choose the product with the lowest price. Through tenders, purchasers request offers from suppliers for the needed products.The ultimate purpose of our research was to develop a guidance on robust tender processes. Therefore, we reviewed the literature to examine the effectiveness and impact of current tendering practices. In addition, we conducted a survey among tender experts from one pharmaceutical company in 17 countries with expanding healthcare coverage.In both the survey and the literature review, we confirmed that worldwide, tendering is a common practice for multisource pharmaceuticals. However, defective tendering practices may increase the vulnerability for some risks including abuse due to intransparent processes, lack of consistency, unclear tender award criteria, a focus on lowest price only, singl...

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Section: Resultsmentioning

confidence: 99%

“…Many authors agree that tendering effectively reduces prices and contributes to cost containment in the short term [ 6 – 8 , 13 , 17 , 20 , 21 , 23 – 29 ]. This seems to be more evident when there is more competition in the tender [ 30 ].…”

Section: Resultsmentioning

confidence: 99%

Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage

Maniadakis

Holtorf²,

Corrêa³

et al. 2018

Appl Health Econ Health Policy

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“…Included studies were published from January 1 st 2012 to December 31 st 2021 and were written in English. The geographical distribution of the studies included 3 studies from the Slovak Republic [25][26][27] , 1 in Brazil [28] , 1 in Czech [27] , 4 in China [13,[29][30][31] , 1 in South Africa [32] , 1 in Cyprus [33] , 1 in Chile [34] , 1 in European countries [35] and 1 in India [36] .…”

Section: Study Characteristics and Findingsmentioning

confidence: 99%

The Impact of Pharmaceutical Electronic Bidding Procurement on Prices of Medicines: A Systematic Review

Pentrakan¹,

Lin²,

Sriphon³

et al. 2022

IJPS

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An electronic bidding system promises to save resources in procurement procedures for many industries. While the results of previous studies in several countries sounded promising, it is concerning that more evidence would be needed to support changes in practice for the pharmaceutical sector. The objective of this study was to determine the prevalence of price saving in bidding-based electronic procurement setting and to clarify the main factors contributing to drug price changes. A comprehensive literature search was retrieved from five databases (Scopus, PubMed, ProQuest, Web of Science, Medline) to identify articles that studied the prices of medicines as a case study before and after the implementation of the electronic bidding system. Articles that were published in English from January 2012 to December 2021 were eligible for inclusion. The result showed that a total of 3214 records articles were identified in the electronic databases after the exclusion of duplicate articles. After the initial review, we found 13 studies that fulfilled our inclusion criteria. The review presented the important information suggesting that the use of the electronic bidding system likely results in a reduction in procurement prices of medicines. The prevalence of price saving for pharmaceutical procurement ranged from 7.24 % to 40 %. Additionally, the following factors were indirectly associated with drug price changes; bid volume, procurement location, contract characteristics, level of competitiveness and procurement organization. Further research may need to examine the functioning of e-bidding policies to address problems like supply disruptions to preserve the integrity of bidding-based pharmaceutical systems.

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“…Further, market control systems consist of different price mechanisms and competitive tendering, as well as supplier selection (Erik Eriksson and Laan, 2007;Järvenpää, 2020). Many scholars agree that tendering effectively reduces prices and contributes to cost containment in the short term (Dylst et al, 2011;Carradinha, 2009;Vogler et al, 2017;Petrou, 2016;Petrou and Talias, 2015). This seems to be more evident when there is more competition in the tender (Curto et al, 2014) where the lowest priced bid is desired (Maniadakis et al, 2018).…”

Section: Market Logics and Tendering Capabilitiesmentioning

confidence: 99%

“…Suppliers make decisions about what to provide on the basis of market prices, in particular, the price buying firms are prepared to pay for the product. Further, most scholars agree that tendering results in price reductions (Dylst et al, 2011;Carradinha, 2009;Vogler et al, 2017;Petrou, 2016;Petrou and Talias, 2015). However, this seems to be more evident when there is more competition for the tender (Curto et al, 2014) where the lowest priced bid is desired (Maniadakis et al, 2018).…”

Section: H4 Market Logics Positively Influence Tendering Capabilitiesmentioning

confidence: 99%

An examination of SME involvement in public procurement under bid lot sizing

Namagembe

Mpeera

Kalid

2021

JOPP

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Purpose This study aims to examine the influence of market logics on tendering capabilities and small and medium enterprise (SME) involvement in public procurement, the influence of SME governance mechanisms on tendering capabilities and SME involvement in public procurement and the influence of tendering capabilities on SME involvement in public procurement. Design/methodology/approach Data was collected from owners/managers of SMEs registered by the Public Procurement and Disposal of Public Assets Authority. The SPSS software and CB-SEM software were used to obtain results on the influence of market logics on tendering capabilities and SME involvement in public procurement, the influence of SME governance mechanisms on tendering capabilities and SME involvement in public procurement and the influence of tendering capabilities on SME involvement in public procurement. Findings Findings indicated that SME involvement in public procurement is mainly influenced by their governance mechanisms whilst both market logics and governance mechanisms had a positive influence on tendering capabilities of SME firms. Market logics and tendering capabilities had no effect on SME involvement. Research limitations/implications The study mainly focussed on SMEs’ involvement in public procurement. The research has implications for decision makers in government and SME firms concerned with enhancing levels of SME involvement in public procurement activities. Originality/value Many governments are now focussing on procurement lot sizing so as to increase SME involvement in public procurement. Despite the use of lot sizing, SME involvement in public procurement is still low in many developing countries and also declining in others. Aspects such as market logics and governance mechanisms that may help understand the variations in involvement have not been given significant attention.

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Price Determinants of the Tendering Process for Pharmaceuticals in the Cyprus Market

Cited by 10 publications

References 29 publications

Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage

Shaping Pharmaceutical Tenders for Effectiveness and Sustainability in Countries with Expanding Healthcare Coverage

The Impact of Pharmaceutical Electronic Bidding Procurement on Prices of Medicines: A Systematic Review

An examination of SME involvement in public procurement under bid lot sizing

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