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ORGANISATION OF EASTERN CARIBBEAN STATES
Pharmaceutical Procurement Service (PPS)
The Benefits of Joint Procurement:
hardware, software, and pharmaceuticals
9 September 2009, CDB W/Shop
Outline
9 September 2009 3
• Organogram
• Vision
• Justification
• Milestones
• Institutional arrangement
• Critical success factors
• Benefits of joint procurement
Organogram
9 September 2009 4
OECS Director General
Dr. Len Ishmael
OECS Social and Sustainable
Development Division (SSDD)
Director
Dr. James Fletcher
OECS/PPS
Staff
Mission
9 September 2009 5
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.”
OECS Member States
9 September 2009 6
Antigua and Barbuda
Anguilla
British Virgin Islands
Dominica
Grenada
Montserrat
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
570K people
Background
9 September 2009 7
Financial constraints have made it difficult
for OECS countries to adequately finance
supply of medicines to health institutions.
Justification
9 September 2009 8
Efficient procurement provides greatest
opportunity for cost-savings.
Selection
ProcurementUse
Distribution
Managing
Drug Supply
Milestones
9 September 2009 10
1986 - ECDS established in St. Lucia
1990 - Attained self-financing status
1995 - Authority renamed OECS/PPS
2004 - Topped ECM$10 in purchases
2009 - Spiralled to M$21 procurement
Achieved annual cost savings of approx. 30%
Institutional Arrangements
9 September 2009 12
• Accession
• Secession
• Legal agreement
• Full judicial personality
• ECCB is payments’ agency
Critical Success Factors (1)
9 September 2009 13
•Reliable MIS
•Written, transparent procedures
•Permanent Secretariat with professionals
•International Competitive Bidding (ICB)
Critical Success Factors (2)
9 September 2009 14
• Formal, signed agreements
• Existing umbrella organization
• OECS participating committees
• High-level Political commitment
• Common ,stable, currency and Central Bank
Procurement
9 September 2009 15
700 Product portfolio
• Contraceptives
• Pharmaceuticals
• Medical Supplies
• Radiological products
Ordering Process
9 September 2009 16
Client submit
requisition
PPS place
order
Supplier ship
to consigneeClient submit
GRN to PPS
Benefits of joint procurement
9 September 2009 17
• Monopsony, strong bargaining power
• Sharing of information & experience
• Regional & functional cooperation
• Enhanced quality control strtegies
• Coodinated training in managing meds
• Increased access to essential medicines
Benefits of joint procurement
9 September 2009 18
• Common Regional Formulary
• Continuing Medical Education
• Drug Utilization Review studies
Medicine Formulary
9 September 2009 19
7th edition of OECS medicine
formulary listing 550 medicines to be
be published in September 2009.
Challenges
9 September 2009 21
• Late payments
• Managing donations
• Purchasing outside the cartel
• Opposition and influence by suppliers
• Countries poor forecasting and tardy response
Benefits of joint procurement
9 September 2009 22
• 1k PSA
• 8k supplier
• US$M35 savings
Hardware and software –
Romania e-gov’t Project
Benefits of joint procurement
9 September 2009 23
• 50 employees
• Technical savvy
• Strong political will
• Network of 3,000 computers
• Operational information society nucleus
Hardware and software –
Cape Verde e-gov’t Project
Benefits of joint procurement
9 September 2009 24
• Increased transparency
• Enhanced tax collection
• Reduced fraud and corruption
• Reduced unit cost of public service delivery
Hardware and software –
Cape Verde e-gov’t Project
Benefits of joint Regional integration
9 September 2009 25
• 6 OECS governments
• World Bank- financed
• ICT for public sector modernisation
legal,financial management,e-procurement
OECS E-GRIP Project
Benefits of joint procurement
9 September 2009 26
Joint procurement of hardware,software,medicines:
A cost-effective strategy ICT modernisation
Take home message
9 September 2009 27
Thank You
Head of Unit