IMPACT OF POOLED PROCUREMENT ON MEDICINES PRICING IN THE PUBLIC SECTOR 2024

This report presents a retrospective study the impact of pooled procurement on medicines pricing involving the Ministry of Health (MOH), Ministry of Defence (MOD), and Ministry of Higher Education (MOHE). The study covering 82 medicines based on two year contract signed before (2018-2020) and after (2020-2022) after the implementation of pooled procurement.

Findings revealed an estimated saving of RM179.6 million (17.7%) from the total procurement value of RM1.01 billion. The highest savings were achieved by MOH, given its role as the main provider of public healthcare services. The MOD and MOHE also recorded substantial savings through several contributing factors such as the switch from innovator to generic medicines, adoption of generics, and implementation of strategic procurement practices. The key cost-saving factors identified include inter-ministerial collaboration, product brand, purchase volume, brand substitution, single product registration holder, number of bidders, price negotiation, product origin, and tiered pricing.

The findings demonstrate a significant savings in medicines pricing through pooled procurement and support inter-ministerial collaboration as a strategic approach to enhancing public healthcare spending efficiency.

Report in the Flipbook can also be accessed through this link:

https://online.fliphtml5.com/jnglw/zsba/#p=1