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

Abstract

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.

Promoting transparency and accountability towards anti-corruption in pharmaceutical procurement system: does e-procurement play a significant role?

“…Moreover, these audit trails provide a complete historical record of procurement processes, thus enabling effective monitoring, evaluation and accountability. By automating specific steps in pharmaceutical procurement system, e-procurement system reduces the potential for human interference and bias (Pentrakan et al, 2022;Tinali, 2022). This, in turn, helps in mitigating the risk of corruption stemming from personal connections or undue influence.…”