PharmaceuticalProcurementDemystified.pptVIP

Pharmaceutical Procurement Demystified Managing supply chains through the Public Sector Sangeeta Raja ACTafrica Why care about supply chains? Over the last decade – health expenditures continue to escalate worldwide. High-income countries spend 10% of their GDP for health Middle-income countries average 6 percent of their GDP and Low income countries, about 5.3% of GDP (Source: WB 2007) Expenditures for medicines and medical consumables has also increased. (Source: WHO, 2004) Despite increased spending – little attention is given to supply chains. (Source: DELIVER, 2006) Source: World Bank 2007 The Burning Question for the Bank Is the Bank investment in HNP significant? Does it buy enough medicines and health supplies to make a difference? Does the Bank’s procurement practices impact the supply chains Does the Bank invest in supply chains? What are the entry points for the Bank? Supply Chain management in WB Portfolio The objective of the ACTafrica review was to: establish the level of Bank support in the procurement of health sector goods and its impact on supply chains determine the extent to which the Bank has had a role in addressing supply chain management through its various products and instruments Looking within…. WB financed procurement of medicines and medical equipment FY99-07 (US $billion) Source: WB Business Warehouse Trend by Year Who is buying what? Medical Equipment (EMD) versus Pharmaceutical Procurement by Region FY 99 - 07 Source: WB Business Warehouse Procurement trends that impact supply chains Number of medicines contracts by Region FY99-07 Procurement Efficiency Uganda HIV/AIDS Control Project, number of repetitive procurements Procurement lead times Commodity Bid Posting to Contract Award Date Condoms 7-9 months Contraceptives, injectables 7 months STI drugs 8 months WB Procurement of key public health commodities Trends in procurement of key public health commodities FY 99- 07 Vaccines Contraceptives ARVs Malaria Are we diagnosing and