By Svetlana Marshall

SMALL companies stand to benefit significantly from the new procurement system being implemented by the Public Health Ministry, subject Minister Dr. George Norton said yesterday. The system now being used for the procurement of drugs and medical supplies ultimately breaks the monopolistic arrangement which existed under the People’s Progressive Party/Civic (PPP/C) administration, Dr Norton said.
As he explained, the new bidding document is designed in such a way that it allows companies of all sizes to participate in an open and competitive process.

“We made some changes where, in the bidding document, it was stated that you had to bid for 100% of the lot; changes were being made with respect to that,” he posited. It was further explained that medical supplies and pharmaceuticals will be placed into lots, thereby allowing companies to bid for particular lots, if they so desire. “We are definitely moving away from brand names, and going for generic names,” Dr Norton said.

MINOR CHANGES
Already, 35 of the new bidding documents have been sold, even though there are still a few minor changes to be made. However, according to Dr. Norton, once confirmed, the changes will be made available to those persons or companies that would have already purchased the document.
“So, we will have to set back the dates when we will open the bids. But, in the meantime, we have a system in place, through PAHO/WHO, UNICEF or UNFPA to support us in getting medication,” he said.
But, new system aside, the procurement of drugs and medical supplies still remains substantially a centralised process, with the exception of minor purchases, such as medical gases, snake-bite kits and small emergency supplies.
The Health Minister explained that allocations have been distributed across the regions as a first step at improving the programme budgeting of health costs at a regional level, even as work is advancing on a costing exercise to determine the total costs of drugs expended in each region.
But procedurally, the monies will be warranted back to the Ministry of Public Health from the regions to facilitate centralised procurement and the benefits of economies of scale and requisite quality controls.
Put in layman’s language, Dr Norton said, “This means that the REOs will send the agreed sum to the Ministry of Public Health, and the Ministry of Public Health will pool all these monies and purchase drugs and medical for the facilities across the regions.”

THE BENEFITS
Asked about the benefits to be derived from this new process, the Health Minister said regions will budget for that which is required.
“In 2014, we had to destroy $280M worth of expired medication; and this is what we are hoping that we would get rid of. That $280M could have gone into the purchasing of equipment, or even building a health centre,” he posited.
Last week in the National Assembly, Minister within the Ministry of Public Health, Dr. Karen Cummings, said that the A Partnership for National Unity+ Alliance For Change (APNU+AFC) government inherited an “albatross” in the New GPC, the only supplier of drugs to the Health Sector.
“Mr Speaker, that the previous government would sell 90 per cent of its shares in an entity it owned and controlled, only to turn back and buy drugs from the same entity, which has become a private enterprise, is imprudent, as much as it is appalling,” she told the House.
“Now, the health sector is burdened with buying drugs from a single source, because the procedure of prequalification was decidedly skewed in favour of that particular company,” Dr. Cummings added.
She, however, hastened to assure the House that the procurement process within the Public Health Sector is being comprehensively reformed, with emphasis being placed on more transparent procedures.
As such, the Public Health Ministry will be shifting gear, moving away from sole-sourcing to open competitive bidding.