E-DRUG: Bulk Purchase Schemes

E-DRUG: Bulk Purchase Schemes (2)
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In response to WB:

I have just completed the dissertation for my MPH degree on the topic:
"Analysis of the capacity of the Fiji Bulk Purchase Scheme for
Pharmaceuticals". I looked at collaboration with the small island states
of the South Pacific and used treatment of hypertension as a sample to
construct an evidence-based essential drug list which was then used for
financial comparisons between countries and against international
comparator prices.

Important factors for success seem to be:
* political will
* shared "ownership" and real involvement in decision making
* leading to a consistent EDL for participating countries
* control of risk in relation to currency fluctuation
* prompt payment so that suppliers want to participate
* and most important, professional management of the entire procurement
and distribution process. This seems to be more important than any
projected savings due to the bulking of orders.
* mark-up on drug sales must be low enough so that people can buy the
drugs, but high enough so that the fund continues to revolve. I
recommend 15 to 20 percent on cost as a mark-up. Financial management at
the local level is crucial.

My dissertation explores the utilisation of profit to support an
"academic detailer" who would work with prescribers as the drug list is
adjusted to a consistent EDL and to encourage rational drug use.

Starting in a small way is obviously ideal, and initial concentration on
anti-TB drugs should both illustrate the challenges and demonstrate the
benefits.

Regards,

Murray Bailey
Pharmaceutical Development Consultant
Sydney, NSW, Australia
Tel/Fax: 61 2 9310 3365
Mobile: 61 414 310 338
Email: bailey_m@bigpond.com

[Thanks, Murray! WB]
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