The impact of centralization on pharmaceutical procurement prices: the role of institutional quality and corruption

Baldi, Simona; Vannoni, Davide

doi:10.1080/00343404.2015.1101517

Cited by 51 publications

(41 citation statements)

References 28 publications

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“…Past discussions suggest that procurement should evolve from a decentralized towards a hybrid and finally to a centralized configuration (e.g. Erridge et al 2001;Karjalainen, 2011;Baldi and Vannoni, 2017). According to our cases, the opportunity to increase procurement centralization only seems possible if certain conditions exist.…”

Section: Weaknessesmentioning

confidence: 53%

Which shape fits best? Designing the organizational form of local government procurement

Patrucco

Walker

Luzzini

et al. 2019

Journal of Purchasing and Supply Management

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The way that public procurement activities are organized has an impact on the performance of public institutions. By reviewing the literature on public procurement organization dimensions this study offers a conceptual framework for public procurement organizational design, distinguishing between the macro, micro and process level dimensions. The framework is tested across the procurement departments of 15 local governments in Wales and Italy. We identify six alternative organizational configurations, differing in their level of centralization and their procurement status within the institution. Their suitability and potential for redesign depend on several internal and external contextual factors (goals, government decision, regulation, geographical environment) in line with the contingency view of organizational design. AbstractThe way that public procurement activities are organized has an impact on the performance of public institutions. By reviewing the literature on public procurement organization dimensions this study offers a conceptual framework for public procurement organizational design, distinguishing between the macro, micro and process level dimensions. The framework is tested across the procurement departments of 15 local governments in Wales and Italy. We identify six alternative organizational configurations, differing in their level of centralization and their procurement status within the institution. Their suitability and potential for redesign depend on several internal and external contextual factors (goals, government decision, regulation, geographical environment) in line with the contingency view of organizational design.

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Section: Weaknessesmentioning

confidence: 53%

Which shape fits best? Designing the organizational form of local government procurement

Patrucco

Walker

Luzzini

et al. 2019

Journal of Purchasing and Supply Management

View full text Add to dashboard Cite

show abstract

“…It can occur at the national, state/provincial, or local levels, and is found in centralized and decentralized procurement systems alike. Decentralization can potentially curb the risk of corruption if constituents have more access to more information about the procurement process and thus hold public officials accountable for procurement outcomes [28]. However, decentralization is not a solution, as if there are weak transparency and accountability mechanisms throughout the procurement process, corruption may still result [3].…”

Section: Where Corruption In Public Procurement Occursmentioning

confidence: 99%

The risk of corruption in public pharmaceutical procurement: how anti-corruption, transparency and accountability measures may reduce this risk

Köhler

Dimancesco

2020

Global Health Action

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Background: The goal of the public procurement of pharmaceuticals is to purchase sufficient quantities of high-quality pharmaceuticals at cost-effective prices for a given population. This goal can be undercut if corruption infiltrates the procurement process. Good procurement practices can help mitigate the risks of corruption and support equitable access to affordable and high-quality medicines. Objectives: This paper aims to 1) examine manifestations of corruption in the pharmaceutical procurement process and key factors behind them, and 2) identify how to design and implement effective anti-corruption, transparency and accountability mechanisms within this process. Methods: This paper was informed by a narrative literature review from 1996 to the present. The search focused on publications that addressed the issue of pharmaceutical procurement and governance and corruption issues. Our search included peer-reviewed literature, books, grey literature such as working papers, reports published by international organizations and donor agencies, and some media articles. Some documents used in this paper were already known to the authors. Results: Procurement is highly vulnerable to corruption particularly in the health sector. What is more, corruption in the procurement process does not appear to be limited to any one level of government or type of health system. The better integration of accountability, transparency and anti-corruption mechanisms in the procurement process is needed to reduce the risk of corruption. Conclusions: Lessons learned suggest that anti-corruption, transparency and accountability mechanisms in the pharmaceutical procurement process, such as open contracting and integrity pacts are helpful towards reducing the risk of corruption.

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“…Joustra et al (2010) analyze the effect of pooling queues of urgent and regular patients on waiting times and capacities required. Reymondon et al (2008), Fattore et al (2014), Alkhuzaee et al (2016), Baldi and Vannoni (2017), Kim and Skordis-Worrall (2017) and Vasquez et al (2017) do not consider risk pooling and the variability reducing balancing effect of the respective method. For the remaining sources risk pooling is not the focus of their optimization models.…”

Section: Theoretical Background On Risk Pooling Methods In Healthcarementioning

confidence: 99%

Exploring risk pooling in hospitals to reduce demand and lead time uncertainty

Oeser

Romano

2020

Oper Manag Res

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Nearly every eighth German hospital faces an elevated risk of bankruptcy. An inappropriate use of inventory management practices is among the causes. Hospitals suffer from demand and lead time uncertainty, and the current COVID-19 pandemic worsened the plight. The popular business logistics concept of risk pooling has been shown to reduce these uncertainties in industry and trade, but has been neglected as a variability reduction method in healthcare operations research and practice. Based on a survey with 223 German hospitals, this study explores how ten risk pooling methods can be adapted and applied in the healthcare context to reduce economic losses while maintaining a given service level. The results suggest that in general risk pooling may improve the economic situation of hospitals and, in particular, inventory pooling, transshipments, and product substitution for medications and consumer goods are the most effective methods in the healthcare context, while form postponement may be unsuitable for hospitals due to the required efforts, delay in treatments, and liability issues. The application of risk pooling in healthcare requires willingness to exchange information and to cooperate, adequate IT infrastructure, compatibility, adherence to healthcare laws and regulations, and securing the immediate treatment of emergencies. Compared to manufacturing and trading companies, hospitals seem to currently neglect the variability reducing effect of risk pooling.

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The impact of centralization on pharmaceutical procurement prices: the role of institutional quality and corruption

Cited by 51 publications

References 28 publications

Which shape fits best? Designing the organizational form of local government procurement

Which shape fits best? Designing the organizational form of local government procurement

The risk of corruption in public pharmaceutical procurement: how anti-corruption, transparency and accountability measures may reduce this risk

Exploring risk pooling in hospitals to reduce demand and lead time uncertainty

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