Evaluation of the effectiveness of the use of federal resources in healthcare institutions

Author(s):  
S. N. Kovalenko

This article discusses issues related to the effectiveness of the use of federal budget funds, provides references to legislative and regulatory acts related to the issue under study, forms an algorithm for the stages of the procurement process, highlights the distinctive features and characteristics of public procurement in the institution of the zrdavookhraneniya system (on the example of the State Budgetary Institution of the State Budgetary Institution named after S. P. Botkin), provides materials for the study of the effectiveness of the use of budget funds of public sector organizations, including in the healthcare sector, and also gives an assessment.

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.


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 12 (10) ◽  
pp. 4181 ◽  
Author(s):  
Natacha Klein ◽  
Tomás Ramos ◽  
Pauline Deutz

The concept of the Circular Economy (CE) is an increasingly attractive approach to tackling current sustainability challenges and facilitating a shift away from the linear “take-make-use-dispose” model of production and consumption. The public sector is a major contributor to the CE transition not only as a policy-maker but also as a significant purchaser, consumer, and user of goods and services. The circularization of the public sector itself, however, has received very little attention in CE research. In order to explore the current state of knowledge on the implementation of CE practices and strategies within Public Sector Organizations (PSOs), this research aims to develop an overview of the existing literature. The literature review was designed combining a systematic search with a complementary purposive sampling. Using organizational sustainability as a theoretical perspective, the main results showed a scattered landscape, indicating that the limited research on CE practices and strategies in PSOs has focused so far on the areas of public procurement, internal operations and processes, and public service delivery. As a result of this literature review, an organizational CE framework of a PSO is proposed providing a holistic view of a PSO as a system with organizational dimensions that are relevant for the examination and analysis of the integration process of CE practices and strategies. This innovative framework aims to help further CE research and practice to move beyond current sustainability efforts, highlighting that public procurement, strategy and management, internal processes and operations, assessment and communication, public service delivery, human resources dimensions, collaboration with other organizations, and various external contexts are important public sector areas where the implementation of CE has the potential to bring sustainability benefits.


2021 ◽  
pp. 142-148
Author(s):  
Walery Okulicz-Kozaryn ◽  
◽  
Kateryna Melnyk ◽  

United territorial communities in the context of decentralization are authorized to carry out public procurement at their own discretion. However, additional responsibility reinforces the need to involve the institution of audit as a guarantor of the economic and social feasibility of the process. The purpose of the article is to determine the place of public procurement as one of the objects of the national audit system in order to increase the efficiency of management of united territorial communities. It was found that, despite the improvement of legislative regulation in the sphere of public procurement, the illegal, often “lobbied” use of budgetary funds requires increased control, both from the state and the public, and from the actual administration of the united territorial communities. The theoretical and methodological foundations of the state audit of public procurement were revealed. The directions of improving the state audit of the public procurement process in united rural territorial communities were proposed, while observing the priority of sustainable development goals. The capabilities of the electronic public procurement platform Prozorro were critically assessed. The reasons and prerequisites for the elimination of the corruption component of the public procurement process at the local (united territorial communities) and global (national economy) levels were identified. The need for IT-auditing in the field of legality and economic feasibility of using budget funds in rural territorial communities was proved. The impact of the audit on the general system of information and analytical support of management consists in assessing the effectiveness of activity processes, information processes and control procedures in order to improve the management model of activity and, accordingly, the decision-making system.


2019 ◽  
Vol 4 (3) ◽  
pp. 273-281
Author(s):  
Anna SLOBODIANYK

Introduction. In the civilized world, the principles of public procurement are based on austerity criteria; fairness and impartiality of contract award decisions; publicity of the procurement process; efficiency of the procurement process; the importance of accountability. The purpose of the research is to analyze the transfer of the procurement system in electronic format as an effective tool for the goods acquisition, works and services in order to financially support the functioning of state structures to serve public needs, which are maintained mainly at the expense of the state and local budgets. Results. The article deals with the concept essence of «electronic procurement» – that is the newest way of procurement, because it is the passing and controlling in the electronic environment of all stages of the procurement cycle, including marketing research, determining the range of economic agents, procedures for purchasing, placing orders, delivering and paying for them, budgeting and planning for purchases by government agencies. An efficient e-procurement system is highlighted, the key to which is the electronicization of the procurement process, which helps to reduce the operating costs of customers and suppliers; speeding up the procurement process and saving time; a wide range of suppliers; simple and convenient management of the procurement process; clear and transparent access to purchasing information. Conclusions. The electronic public procurement system makes it easier for participants to get started with the state, find the right procurement, submit a bid and win bidding, since all the procurement information is available on the procurement page, and in the change case in the tender documentation, all previous revisions of documents remain in the system, which can be downloaded and viewed. Such transparency of the procedure makes it possible to prevent corruption risks and is a way to develop democratic and open processes in society. Keywords: public procurement, participant, customer, Law of Ukraine "On Public Procurement", tender, auction, public procurement, bidding, open bidding.


2018 ◽  
Vol 2018 (9) ◽  
pp. 123-138
Author(s):  
Nataliya TKACHENKO ◽  

One of the mechanisms to ensure the public and state needs in goods, works and services is procurement, the principles of which are based on openness, transparency and efficiency. In various periods, rules of procurement in public sector of the economy were changed by regulatory and legal acts. Performance indicators of procurement (such as level of competition, share of competitive purchases and share of canceled bids) were being changed as well. Low performance indicators of procurement have caused negative consequences for the development of the national economy. Continued application of competitive methods of implementation remains unchanged in the evolution of procurement. The latest trend in procurement processes is their automation, which greatly increases the level of openness, but does not solve the problems of timely and high-quality satisfaction of needs in public and the state procurement. Development of procurement in public sector of the economy, depending on state of procurement legal regulation in 2000-2017, is studied. Structure of public procurement, dynamics of canceled trades and structure of the value of concluded contracts by sources of financing and methods of procurement are analyzed. Comparative characteristic of Ukrainian legislation on procurement by various criteria is carried out in the scientific literature. Assessment of the current system of electronic public procurement is controversial in scientific circles. The stages of formation and development of procurement of goods, works and services are determined on the basis of evolution of procurement legal regulations. Dynamics of the main indicators of procurement is analyzed as well. The author used the method of retrospective analysis and statistical analysis methods based on data published by the State Statistics Service of Ukraine, the analytic module of the Prozorro electronic system, reports of international organizations and the Accounting Chamber of Ukraine.


2018 ◽  
Vol 6 (1-2) ◽  
pp. 37-41
Author(s):  
O. M. Nepomnyashchyy ◽  
T. K. Mitropan

In the article, with the help of theory and practice, the essence of foreign experience of risk management in the system of procurement of goods, works and services in the field of construction, its application content is disclosed. The main objectives of controlling purchases in the field of construction, which are provided with planning functions, are analyzed; analytical function; information function; coordination function. An important place is taken into assimilating of the different approaches to insurance of risks in the system of procurement of goods, works and services in the field of construction, differing in the degree of public participation. It is determined that the system of state purchases plays a strategic role in the construction sphere and promotes: modernization of infrastructure in the construction industry; creation of new methods and technologies of construction; housing and communal services development; improvement of personnel training, etc. It is stated that the achievement of the goals of organizing the procurement process in the construction and operation of facilities is based on the principles of openness and transparency of information contained in contracts for the procurement of construction services; provision of competition; professionalism of clients; stimulating innovation; harmony of contractual systems in the construction procurement field; realization of state and municipal needs. Changing the functions of the state in the complex conditions of development of the new economic system in one way or another affects all aspects of state participation in the economy, including in the construction sector. The state carries out the functions that their implementation is associated with significant material costs and is accompanied by mandatory costs for the purchase of certain types of construction goods, works and services.In general, the public procurement process is proposed to be seen as a mechanism by which countries allocate accumulated public funds to meet public needs and ensure the functioning of the country. The stimulating, innovative role of procurement in construction is manifested in the fact that the state, acting as a customer, is also the «first buyer» of new types of construction products and samples of experimental products in the field of construction, which have not, so far, been serial.


2020 ◽  
Vol 20 (4) ◽  
pp. 403-421
Author(s):  
Inger Johanne Pettersen ◽  
Kari Nyland ◽  
Geraldine Robbins

Purpose The purpose of this paper is to study the links between contextual changes, contract arrangements and resultant problems when changes in outsourcing regulatory requirements are applied to complex pre-hospital services previously characterized by relational contracting. Design/methodology/approach The study deployed a qualitative design based on interviews with key informants and extensive studies of documents. It is a longitudinal study of a procurement process taking place in a regional health authority covering the period 2006 to 2017. Findings A complex and longitudinal public procurement process where pre-hospital (ambulance) services are transformed from relational and outsourced governance to more formal arrangements based on legal and transactional controls, is described in detail. After several years, the process collapsed due to challenges following public scrutiny, legal actions and administrative staff resignations. The public body lacked procurement competencies and the learning process following the regulations was lengthy. In the end, the services were in-sourced. Research limitations/implications This study is based on one case and it should, therefore, not be generalized without limitations. Practical implications One practical implication of this study is that transactional contracts are not optimal when core and complex services are produced in inter-organizational settings. In public sector health-care contexts, the role of informal and social controls based on relational exchanges are particularly applicable. Social implications Acute health-care services essential to citizens’ security and health imply high asset specificity, frequency and uncertainty. Such transactions should according to theory be produced in-house because of high agency costs in the procurement process. Originality/value The paper contributes to the understanding of how the public procurement process can itself be complex, as managerial challenges and solutions vary along several dimensions and are contingent upon external factors. In particular, the study increases knowledge of why the design and implementation of outsourcing models may create problems that impede and obstruct control in a particular public sector context.


Author(s):  
Prabir Panda ◽  
G. P. Sahu

Studies highlight that public procurement in any country acts as a barometer of public confidence in fairness and transparency of public institutions. A number of cases related to corruption in public procurement in the country have been highlighted by media on regular basis. These incidents raise questions regarding robustness of the procurement framework in vogue in the country. Though no special legislative framework dealing with public procurement exists in the country, the administrative guidelines on the subject are quite exhaustive. Procurement is not a state subject; hence law can be made by the Centre for entire country. However, no separate law governing public procurement has been enacted in India. However, public procurement in India is not bereft of its share of issues. Multiplicity of instructions, absence of procurement law and singular emphasis on upfront value of acquisition without considering life cycle cost mars public procurement in India. Further, social and environmental sustainability has also not received the attention it deserves. Studies highlight that migration of public procurement to Internet could provide us savings of up to 25% by streamlining 30% of Indian Union Budget spent on provisioning of goods / services. However, any such endeavor has 70% chances of failure. With only 13% e-procurement research focusing on public sector make matter worse. In the above backdrop, the chapter would cover: Importance of public procurement, Difference between public and corporate procurement, Overview of procurement framework of the country - covering constitutional/ legislative/ administrative provisions, generic public procurement process, various types of procurements – limited tender, open tender, single tender, issues in public procurement of the country and e-procurement initiatives by Government of India and status thereof.


2015 ◽  
pp. 2258-2290
Author(s):  
Nataša Pomazalová ◽  
Stanislav Rejman

This chapter focuses on the effective implementation of new electronic tools for Public e-Procurement in public sector organizations. While an analysis of the characteristics of transformation processes necessary for the development of e-Government and the choice between Public e-Procurement tools is theoretically already well developed, there are still a number of ambiguities in the approaches of rationalization implementation of these. A deeper understanding of the decision-making phenomenon in general is provided. Flexibly adjusting the e-Government strategy on dynamics of the development of Public e-Procurement tool ex ante or leading in an effort to change the organizational structures, information flows, and constraints in which public sector organizations operate in the area of Public e-Procurement. Public e-Procurement tools are selected for the analysis, because interesting progress is expected here. Results from the nature of the dynamic transformation processes and decision-making show the need to support changes in the environment arising from the development of e-Government.


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