How well does Malaysia achieve value for money in public sector purchasing of medicines? Evidence from medicines procurement prices from 2010 to 2014

2020 ◽  
Author(s):  
Nurhafiza Md Ham ◽  
Prasadini N Perera ◽  
Ravindra P Rannan-Eliya

Abstract Background Malaysia’s public healthcare sector provides a greater volume of medicines at lower overall cost, indicating its importance in providing access to medicines for Malaysians. However, the Ministry of Health (MOH), as the main healthcare provider, has concerns about the continuous increase in the public sector medicines budget, and achieving efficiencies in medicines procurement is an important goal. The objectives of this study were to assess the overall trend in public sector pharmaceutical procurement efficiency from 2010 to 2014, and determine if the three different ways in which MOH procures medicines influences efficiency.Methods We matched medicines from the public sector procurement report by medicine formulation to medicines with a Management Sciences for Health (MSH) International Reference Price (IRP) for each year. Price ratios were calculated, and utilizing the information on quantity and expenditure for each product, summary measures of procurement efficiency were reported as quantity- and expenditure-weighted average price ratios (WAPRs) for each year. Utilizing MOH procurement data to obtain information on procurement type, a multiple regression analysis, controlling for a number of factors that can influence prices, assessed whether procured efficiency (relative to IRPs) differed by MOH procurement type.Results Malaysia’s public sector purchased medicines at two to three times the IRP throughout the study period. However, procurement prices were relatively stable in terms of WAPRs each year (2.2 and 3.2 in 2010 to 1.9 and 2.9 in 2014 for quantity and expenditure WAPRs, respectively). Procurement efficiency did not vary between the three different methods of MOH procurement. Procurement efficiency of both imported innovators and imported generics were significantly lower ( P <0.001 and P <0.01) than local generic products, and medicine source and category influenced the procurement efficiency of each MOH procurement mechanism.Conclusion The design of different medicines procurement mechanisms, along with the balance of interests that Malaysia has sought to achieve in its public procurement procedures, have not been able to achieve lower public sector medicines procurement prices (relative to IRP). Introducing pooled procurement options along with continuous monitoring of procurement efficiency and exploring ways to improve price competition among local and foreign suppliers is recommended.

2020 ◽  
Vol 44 (3) ◽  
pp. 434
Author(s):  
Sandra G. Leggat ◽  
Zhanming Liang ◽  
Peter F. Howard

ObjectiveEnsuring sufficient qualified and experienced managers is difficult for public sector healthcare organisations in Australia, with a limited labour market and competition with the private sector for talented staff. Although both competency-based management and talent management have received empirical support in association with individual and organisational performance, there have been few studies exploring these concepts in the public healthcare sector. This study addresses this gap by exploring the perceived differences in demonstration of core competencies between average and higher-performing managers in public sector healthcare organisations. MethodsMixed methods were used to define and measure a set of competencies for health service managers. In addition, supervisors of managers were asked to identify the differences in competence between the average and high-performing managers reporting to them. ResultsSupervisors could clearly distinguish between average and higher-performing managers and identified related competencies. ConclusionsThe consistent pattern of competence among community health and hospital public sector managers demonstrated by this study could be used to develop a strategic approach to talent management for the public healthcare sector in Australia. What is known about this topic?Although there are validated competency frameworks for health service managers, they are rarely used in practice in Australia. What does this paper add?This paper illustrates the perceived differences in competencies between top and average health services managers using a validated framework. What are the implications for practitioners?The public health sector could work together to provide a more effective and efficient approach to talent management for public hospitals and community health services.


Author(s):  
Stephen Cantarutti ◽  
Emmanuel M. Pothos

Abstract Background According to recent polling, public trust in the healthcare sector remains low relative to other industries globally. The implications of low healthcare trust permeate throughout the industry in a number of ways, most visibly by discouraging therapy compliance. Methods This study investigated four putative determinants of trust in healthcare-related scenarios: individuals vs. collective groups as communicators of healthcare advice; expert vs. laypeople as providers of healthcare communication; public vs. private healthcare sector; and positive vs. negative information. Two hundred seventy-four participants were recruited via Prolific Academic and were presented with four statements in random order, related to a positive reflection of the public healthcare sector, a negative reflection of the public healthcare sector, a positive reflection of the private healthcare sector and a negative reflection of the private healthcare sector. According to these reflection, participants were repeatedly asked to rate the system on its trustworthiness. Trust outcomes were constructed using a four-dimension framework, consisting of benevolence, reliability, competence and predictability. Results Claims relating to the public sector had a significantly stronger impact on benevolence and reliability than claims relating to the private sector; claims from individuals had a significantly stronger impact on all trust variables than claims from collectives; and claims from laypeople had a significantly greater impact on reliability and competence ratings than claims from experts. Conclusions The findings in this study offer insight into the patterns with which trust decisions are made in healthcare contexts. More importantly, this research offers a novel perspective of how different factors interact to affect the various facets of trust. These results provide a foundation for future study in this evolving area, and offer insights into designing effective communication strategies that cultivate greater levels of individual trust in the healthcare sector.


2006 ◽  
Vol 53 (3) ◽  
pp. 299-311 ◽  
Author(s):  
Viktorija Bojovic

This paper discusses recent changes in the way public services are delivered A marked increase in the cooperation between the public and private sector in the realization of complex projects, mostly concerning development of infrastructure, is the main characteristic of present-day developing economies. The creation of new, innovative agreements is driven by the limitation of public funds and an ever-growing demand for an increase in the quality of public services. Looking upon the western economies experience alternatives to the traditional public sector procurement are identified in the public/private partnership. The public/private partnership can be seen as one component in the rearrangement of the public sector with a management culture that focuses on the citizen or customer. Also included in this are accountability for results, investigation of a wide variety of alternative service delivery mechanisms, and competition between public and private bodies for contracts to deliver services consistent with cost recovery and the achievement of value for money. The partnership can be realized through an array of models and in this paper priority is given to the DBFO (design-build-finance-operate) model, due to its importance in implementation. The DBFO model is considered to be a synonym for the public/private partnership, as it is the most suitable for complex projects and gains the most benefits.


2020 ◽  
Vol 23 (1) ◽  
Author(s):  
M. Razeen Davids ◽  
Thabiet Jardine ◽  
Nicola Marais ◽  
Julian C. Jacobs ◽  
Sajith Sebastian

The seventh annual report of the South African Renal Registry summarises the 2018 data on kidney replacement therapy (KRT) for patients with kidney failure in South Africa. In December 2018, the number of patients who were being treated with chronic dialysis or transplantation stood at 10 730, a prevalence of 186 per million population (pmp). Most patients are treated with haemodialysis in the private healthcare sector, where the prevalence was 839 pmp. In the public sector, which serves 85% of the South African population, the prevalence of KRT (67 pmp) remained below the level reported for 1994. Limpopo and Mpumalanga remain the most under-served provinces and Blacks the most under-served population group. The Western Cape province had the highest public sector treatment rates by a large margin and was also where most of the country’s public sector kidney transplants were performed.


2011 ◽  
pp. 2160-2178
Author(s):  
Tommaso Federici

This chapter deals with the introduction of electronic procurement in the public healthcare domain. After a brief discussion on the healthcare spending characteristics and on the suitability of e-procurement tools in the public sector; the long-lasting experience of e-procurement implementation promoted by an Italian Local Healthcare Public Agency is described. This initiative included some pilot projects and applied many different solutions; always involving both a new ICT tool and a thorough process redesign. The development of the innovation introductions is discussed; together with their organizational and managerial background; the description of the new processes; and the analysis of the most relevant results. The chapter provides a fairly comprehensive illustration of available solutions; opportunities; and challenges in this still neglected topic.


Author(s):  
Tom Brown

This chapter begins by considering public procurement in the context of equality duties. The United Kingdom government has not used the Equality Act 2010’s regulation-making powers to impose specific statutory public procurement equality duties in England, but the Welsh and Scottish Ministers have made such regulations. Equality considerations are nonetheless relevant considerations in a public authority’s public procurement decisions as part of the general public sector equality duty in section 149 of the Act. The extent to which equality can (and should) be taken into account in the public procurement process is also, therefore, relevant to private undertakings which might wish to tender for the provision of goods or services to public authorities. The chapter then addresses the provisions in the Act intended to improve transparency in the private sector by prohibiting clauses which prevent employees discussing their pay. The Act introduced, in section 78, a power to make regulations which would impose a requirement on businesses to report on gender pay differences.


2020 ◽  
Vol 10 (1) ◽  
pp. 67
Author(s):  
Wael Omran Aly

For many decades, the Egyptian people have suffered from deplorable public healthcare service featured by indolence, malfunction and traditionalism. Although, healthcare is a distinctive service industry concerning various complicated responsibilities; but the consecutive government of Egypt had badly handled such issue. Then, the apathetic performance of the public healthcare service becomes a dilemma for the people of Egypt; especially the poor among them. Therefore, the foundation of an adequate public healthcare service system, that respect the dignity of the people and respond to their arising health care needs; was frequently on the agenda priorities of the Egyptian governments after the 2011 and 2013 uprisings. Hence recently, the government -after reaching political and economic stability- seeks to build an ambitious newly public health care system to meet the expectation of the people to acquire high standard inexpensive and hasty public healthcare services. Consequently, in order to realize such aim; the Egyptian government had established the public agency for accreditation and quality control according to law no.2 of comprehensive healthcare insurance system issued at 2018. Then, it urges a national campaign to reform the public healthcare sector and to develop the efficacy and quality of its services. Hence, this paper aims to propose how the public healthcare organizations in Egypt can tackle various challenges and enhance adequately its capabilities; in order to be able to adopt the proposed Lean Six Sigma (LSS) methodology effectively; which can then provide an adequate framework for creating organized improvement exertions in healthcare; necessary to bestow guidelines on how to manage a quality service system to patient satisfaction by decreasing waste, variation and work disparity in the service processes.


2010 ◽  
pp. 218-237 ◽  
Author(s):  
Tommaso Federici

This chapter deals with the introduction of electronic procurement in the public healthcare domain. After a brief discussion on the healthcare spending characteristics and on the suitability of e-procurement tools in the public sector; the long-lasting experience of e-procurement implementation promoted by an Italian Local Healthcare Public Agency is described. This initiative included some pilot projects and applied many different solutions; always involving both a new ICT tool and a thorough process redesign. The development of the innovation introductions is discussed; together with their organizational and managerial background; the description of the new processes; and the analysis of the most relevant results. The chapter provides a fairly comprehensive illustration of available solutions; opportunities; and challenges in this still neglected topic.


Sign in / Sign up

Export Citation Format

Share Document