Pharmaceutical Procurement Service (PPS)
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1 ORGANISATION OF EASTERN CARIBBEAN STATES Pharmaceutical Procurement Service (PPS) The Benefits of Joint Procurement: hardware, software, and pharmaceuticals 9 September 2009, CDB W/Shop
2 St. Lucia s Pigeon Island 9 September
3 Outline Organogram Vision Justification Milestones Institutional arrangement Critical success factors Benefits of joint procurement 9 September
4 Organogram OECS Director General Dr. Len Ishmael OECS Social and Sustainable Development Division (SSDD) Director Dr. James Fletcher OECS/PPS Staff 9 September
5 Mission OECS/PPS MISSION STATEMENT Our mission is to maximize healthcare services of the OECS countries by pooled procurement and management of pharmaceuticals and related medical supplies. 9 September
6 OECS Member States Anguilla Antigua and Barbuda British Virgin Islands Dominica Grenada 570K people Montserrat St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines 9 September
7 Background Financial constraints have made it difficult for OECS countries to adequately finance supply of medicines to health institutions. 9 September
8 Justification Efficient procurement provides greatest opportunity for cost-savings. Selection Use Managing Drug Supply Procurement Distribution 9 September
9
10 Milestones ECDS established in St. Lucia Attained self-financing status Authority renamed OECS/PPS Topped ECM$10 in purchases Spiralled to M$21 procurement Achieved annual cost savings of approx. 30% 9 September
11 Annual Purchases 9 September
12 Institutional Arrangements Accession Secession Legal agreement Full judicial personality ECCB is payments agency 9 September
13 Critical Success Factors (1) Reliable MIS Written, transparent procedures Permanent Secretariat with professionals International Competitive Bidding (ICB) 9 September
14 Critical Success Factors (2) Formal, signed agreements Existing umbrella organization OECS participating committees High-level Political commitment Common,stable, currency and Central Bank 9 September
15 Procurement 700 Product portfolio Contraceptives Pharmaceuticals Medical Supplies Radiological products 9 September
16 Ordering Process Client submit requisition PPS place order Client submit GRN to PPS Supplier ship to consignee 9 September
17 Benefits of joint procurement Monopsony, strong bargaining power Sharing of information & experience Regional & functional cooperation Enhanced quality control strtegies Coodinated training in managing meds Increased access to essential medicines 9 September
18 Benefits of joint procurement Common Regional Formulary Continuing Medical Education Drug Utilization Review studies 9 September
19 Medicine Formulary 7 th edition of OECS medicine formulary listing 550 medicines to be be published in September September
20 Availability of Medicines 9 September
21 Challenges Late payments Managing donations Purchasing outside the cartel Opposition and influence by suppliers Countries poor forecasting and tardy response 9 September
22 Benefits of joint procurement Hardware and software Romania e-gov t Project 1k PSA 8k supplier US$M35 savings 9 September
23 Benefits of joint procurement Hardware and software Cape Verde e-gov t Project 50 employees Technical savvy Strong political will Network of 3,000 computers Operational information society nucleus 9 September
24 Benefits of joint procurement Hardware and software Cape Verde e-gov t Project Increased transparency Enhanced tax collection Reduced fraud and corruption Reduced unit cost of public service delivery 9 September
25 Benefits of joint Regional integration OECS E-GRIP Project 6 OECS governments World Bank- financed ICT for public sector modernisation legal,financial management,e-procurement 9 September
26 Benefits of joint procurement Take home message Joint procurement of hardware,software,medicines: A cost-effective strategy ICT modernisation 9 September
27 Thank You Head of Unit 9 September
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