Monday, November 21, 2016
EDITOR, The Tribune.
I have read a number of articles recently in the newspaper regarding concerns of local pharmaceutical wholesalers that the government (Public Hospital Authority) may be planning to bypass them and go directly to manufacturers to purchase drugs.
It appears that wholesalers are afraid that this could adversely affect their businesses. With the Drug Plan in place and NHI coming, there will be very little “private market” left for these businesses to survive on. Buying direct from manufacturers would mean that The Government would have to assume the function of the distributors, taking the loss on their financial contributions in salaries, taxes and donations, and literally add more costs to the already weighted down public purse.
If a product is needed and not available, the government has a right to purchase from wherever and whoever they want, especially in the case of a necessary medicine. However, if it is true that the PHA is planning to purchase direct from manufacturers and assume the role of the wholesalers in an effort to lower their cost for all drugs, I believe that they are taking a step back .
Governments are moving away from the model of taking on the details and tasks of running businesses. Public procurement processes are one of the best examples of how citizens, governments and businesses can work together for mutual gain. Government’s job is to regulate the market, set the guidelines and the rules and create an even playing field, then let the private sector manage the business.
Based on their own statement, it appears that The Public Hospital Authority has a “Procurement Policy.” This policy is central to the issues raised. Has that policy been adhered to? Is it transparent? Are the wholesalers and the public fully aware of who all the bidders are, the prices submitted, who won the awards, etc? Are the wholesalers familiar with the policy? If not, why not? Certainly they should not be “playing the game without the rules”.
Fundamentally, transparency and accountable procurement cycles mean that companies that win the bids are those with the best product, at the best price targeted at achieving the best outcome. The bidding process, along with complete TRANSPARENCY, sets the backdrop to ensure that both the government and the private sector are working together in the best interest of all.
BAHAMIANS FIRST
Nassau,
November 17, 2016.
Comments
Economist says...
So the Government regulator regulates itself.
Great way to encourage corruption and waste taxpayers money.
Sounds about right for these guys.
Posted 21 November 2016, 1:30 p.m. Suggest removal
alfalfa says...
For years the lions share of the government drug contracts have gone to the big wholesale companies who "rape" the retailers, and by extension, the public, with their ridiculous markups.
These same wholesalers have gone on record as saying that the government does not pay their contracts, and now they are crying because they are being by-passed. In other countries that have NHI, pharmacies and wholesale drug companies still exist, and I don't see why the Bahamas should be any different. No sympathy from me. They all have gotten rich while driving up prescription costs to the average citizen.
Posted 22 November 2016, 11:55 a.m. Suggest removal
Log in to comment