# \[e-drug\] Private sector drug supply in developing countries

**URL:** <https://talk.edrugplus.org/t/e-drug-private-sector-drug-supply-in-developing-countries/11836>\
**Category:** e-drug\
**Created:** [July 7, 2001, 1:13pm UTC](https://talk.edrugplus.org/t/e-drug-private-sector-drug-supply-in-developing-countries/11836 "2001-07-07T13:13:58Z")\
**Posts on this page:** 1\
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**Author:** ![did.jms](https://avatars.discourse-cdn.com/v4/letter/d/e68b1a/32.png) [@did.jms](https://talk.edrugplus.org/u/did.jms)\
**Post date:** [July 7, 2001, 1:13pm UTC](https://talk.edrugplus.org/t/e-drug-private-sector-drug-supply-in-developing-countries/11836/1 "2001-07-07T13:13:58Z")

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E-drug: Private sector drug supply in developing countries  
-------------------------------------------------------------------------

Dear E-druggers,

I have made some observations on drug supply to patients, with a  
focus on the private sector. It is an expansion of what I wrote  
earlier on pharmacy practice in the private sector of developing  
countries.

In my country, drug-outlets prioritise sales that give most profit to  
the owners. Drug-outlets in Uganda are licensed by at least 2  
different governmental institutions and there is overlap and  
confusion. There is little control or audit of these outlets.

You may find the below article useful. I wrote it as a discussion  
document for health and drug policy professionals in Uganda.

Sincerely,

George Kibumba, MPS  
Community and Drug Information Pharmacist/Uganda.

[Thanks George for this excellent discussion article, and its  
attention for the private pharmaceutical sector, an often forgotten  
spot in pharmaceutical system improvement. Good that you  
recognise the importance of these facilities in drug supply, and that  
there is little control over it. You correctly pointed to the fact that  
there are more varieties of private sector drug outlets than only  
pharmacies and drug shops. I have a couple of comments on your  
article: 1) So far, we know little of what actually happens in private  
sector facilities and comments on these practices are often  
impressionistic (e.g. selling two caps of penicillin). Drug use  
indicator surveys have now been carried out in public sector  
facilities of many countries, but on private sector activities we have  
remarkably few data. It would be good if such private sector data  
on prescribing and dispensing would be made available. this would  
allow us to make better decisions about what to focus on if we  
really want to change practice. 2) The bottom line of your article is  
that control of activities in private sector facilities needs to be  
strengthened. However, control often has its limitations, as people  
will find ways around control. Although I do agree with you that  
proper regulation is necessary, have you thought of creating or  
increasing incentives for appropriate pharmaceutical care? Could  
private sector organizations be motivated to pay attention to your  
arguments? Would there really be no interest at all in making an  
income on providing appropriate pharmaceutical care? 3) What I  
somewhat missed in your article is what the National Dug Policy of  
Uganda says about private sector activities and how it is proposed  
to control it. Maybe you could give us some insight in that? HH]

-----------------------  
Overview of legislation on drug distribution and its impact on drug  
use problems

By George Kibumba

Introduction

Before the Ministry of Health abolished cost sharing early this year,  
83% of the population used to seek first contact treatment from the  
private sector3. That trend is not likely to change, as governmental  
health facilities frequently fail to supply medicines and the quality of  
care is generally low. The majority of the population will certainly  
continue to receive drugs and first contact health care from the  
private sector.

In the private sector, health care always involves drug use.  
Unfortunately, medicines are rarely administered and used properly  
by health workers and the general public alike.

This article

� Describes drug distribution to the general public in the Ugandan  
&nbsp;&nbsp;&nbsp;private sector  
� Explains the effects and causes of the current distribution  
&nbsp;&nbsp;&nbsp;system  
� Describes proper control and audit of drug distribution at patient  
&nbsp;&nbsp;&nbsp;level  
� Gives practical recommendations and conclusions on the  
&nbsp;&nbsp;&nbsp;subject.

Drug distribution in the private sector

Drug distribution by professional and non-professional health  
workers in the private sector is not adequately controlled.  
Description of non-professional health providers is outside the  
scope of this article. The article will dwell on professional health  
workers.

In Uganda, drugs can easily be obtained from every professional  
health provider in the private sector. Infact, there is loose  
availability and access to essential medicines. Yet uncontrolled  
access to useful drug substances is more disastrous than controlled  
access.

The sources of drugs to the general public include the following

� Clinics  
� Drug Shops  
� Pharmacies  
� Private hospitals (which may be called medical centers, nursing  
&nbsp;&nbsp;&nbsp;homes, etc).

Note that of all drug outlets in this country, The National Drug  
Authority (our Drug Regulatory Agency) licenses only drug shops  
and pharmacies.

Yet, even in places where pharmacies exist, clinics are major  
sources of drug supply to the general public. Clinics are only  
licensed (by the Medical and Dental Practitioners Council) to provide  
care to outpatients, and not to supply medicines on a retail basis.

Private hospitals are similarly licensed by the Medical and Dental  
Practitioners Council to provide patient care. However, private  
hospitals are also important drug outlets. Nevertheless, their drug  
supply activities are not licensed or controlled by the National Drug  
Authority.

According to The National Drug Policy and Authority Statute of  
1993, the responsibility to audit and control activities of drug  
distribution in Uganda is with the National Drug Authority and not  
the professional councils. Power to audit and control activities in  
private clinics and hospitals is held by The Medical and Dental  
Practitioners Council and Nurses and Midwives Council.

Dispensing clinics and private hospitals hardly meet the minimum  
requirements of operating retail or hospital pharmacies. Meanwhile,  
The Allied Health Professionals' Council is seeking to license and  
handle activities of Class C drug shops and expand the list of Class  
C drugs. The desire is to enact a legislation to allow them to stock  
and supply antimicrobials and other class B substances.

It is clear that all health workers in Uganda claim the right to  
procure, stock and supply the whole range of drugs to the general  
public.

The effects of the system

Because of the obvious overlap and overload of duties, health  
personnel in the private sector are not properly supervised and  
controlled. Lack of appropriate control and supervision contributes  
to irrational diagnosis and prescribing; over prescribing and under  
prescribing, and incorrect prescribing.

Unnecessary prescriptions increase the cost of treatment. While  
underprescribing and incorrect prescriptions contribute to drug  
resistance, improper dispensing can result in drug toxicity and  
treatment failure.

What are the causes of the above problems?

Health workers incorrectly claim a role of distribution of drugs to  
the general public. The laws governing drug distribution are not  
harmonized and health professionals distribute drugs to the general  
public without control from the Drug Regulatory Agency.

In addition, there is a long-standing wish to embed drug distribution  
in clinics and other outpatient facilities. If such wishes are granted,  
control of drug distribution in Uganda will remain a myth and there  
are many countries to learn from. Thailand, for example, has a  
private sector where every drug outlet diagnoses, prescribes and  
dispenses. Expenditure on drugs and resistance to infections is  
enormous in Thailand.

Retail pharmacies, with are licensed by the National Drug Authority  
to handle prescriptions, do not receive them. Such pharmacies will  
have to dispense without prescriptions, to make enough income to  
cover their running costs. Alternatively, those retail pharmacies will  
close to wholesale practice, for lack of retail business. As a result,  
inappropriately licensed facilities will dispense drugs.

Where ethical retail pharmacies exist, their effort to have proper  
control over access to medicines is frustrated. When such  
pharmacies refuse to sell 2 capsules of a penicillin (a  
prescription-only product) over the counter -- patients arrogantly  
deny advice, since this inappropriate treatment can be easily got  
from the next drug outlet.

Control and auditing of drug supply in the private sector

Selling drugs is business, and as the private sector appears to be  
motivated by profit, as opposed to service, control of drug  
distribution and appropriate auditing can not be ignored. A  
meaningful drug supply system in the private sector can only be  
realized when there is control and auditing.

Controlling means ensuring that only appropriately licensed facilities  
distribute drugs. Auditing activities of drug distribution involves  
cross--checking, to find out whether the appropriately licensed  
facilities are really complying with the guidelines and set standards.

Auditing and controlling drug distribution is laboursome. That  
implies that licensing drug distribution should be handed over to  
The Council of The Pharmaceutical Society of Uganda. That will  
allow the Regulatory Agency more time to ensure that only  
appropriately licensed facilities supply quality drugs and that such  
units are adequately audited. This calls for facilitation and  
empowerment of The Council of The Pharmaceutical Society of  
Uganda.

At the same time, the desire of health workers in the private sector  
to license their respective private practices is not bad. However,  
non-pharmaceutical Professional Councils should not handle  
licensing drug distribution, which they always embed in their  
licensing. If licensing drug distribution continues the way it is now,  
there will be more confusion and disaster to an already faulty  
system.

When Uganda opts for an ill-defined system where every  
drug-outlet diagnoses, prescribes and dispenses, treating an  
uncomplicated case of malaria will cost at least Shs 10,000/= (5  
USD) in the near future. It will also be impossible to control drug  
supply and distribution.

Therefore, every responsible health worker in Uganda should  
observe a need to revise desires to retail drugs.

Since the 7th Parliament is in place and a new pharmacy and  
pharmacy practice bill is ready; the Ministry of Health should  
consider the following conclusions and recommendations.

Conclusions and recommendations

1. The National Drug Authority must have the power to audit all  
units of drug distribution in the private sector. Such units of drug  
distribution to patients include clinics, nursing homes, hospitals,  
drug shops or pharmacies. That Regulatory Authority should  
implement laws governing drug distribution in a phased manner, as  
described in point 3 below.

2. Licensing units of drug distribution should be handled by The  
Council of The Pharmaceutical Society of Uganda. Before The  
Medical and Dental Practitioners Council or Nurses and Midwives  
Council license nursing homes, medical centers, which function as  
hospitals, there must be close collaboration with The Council of The  
Pharmaceutical Society of Uganda.

3. Where retail pharmacies are available, in reasonable distance,  
clinics and other outpatient facilities should not be allowed to retail  
medicines. Those facilities should refer prescriptions to the retail  
pharmacies. This will stop retail pharmacies from dispensing  
prescription-only and pharmacy-only drugs without prescription. It  
will also organize the dispensing system in the country and reduce  
the burden of drug misuse and overuse.

4. The few pharmacists available (about 140!) in Uganda should be  
kept at supervisory level and given adequate continuing pharmacy  
education. Employing full-time pharmacists will not stop wholesale  
pharmacies from selling drugs to clinics and other outpatient  
outlets. Employing full-time pharmacists in retail pharmacies will not  
solve the problem of inappropriate drug distribution in the country --  
one of the principal factors -- precipitating drug misuse and  
overuse.

References

1. National Drug Policy and Authority Statute, 1993.

2. Pharmacy and Pharmacy Practice Bill, 1999.

3. Home Based Management of Fevers, A Workshop in Grand  
Imperial Hotel -- Kampala Uganda, 2001.

4. INRUD NEWS, Newsletter of the International Network for  
Rational Use of Drugs, Vol 10, Number 2, March 2001.

5. The Medical and Dental Practitioners Statute, 1995

6. The Nurses and Midwives Act.

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