Annual Programme of Work 2009 - Ministry of Health

7. PROCUREMENT
Significant progress has been made in the procurement of goods, works and services, in the
Health sector. However recent reviews have indicated that the decentralisation of
procurement functions carries some risks which include loss of economies of scale,
distribution and co-ordination, particularly on quality assurance.
The 2007 annual review report made reference to the fact that the logistics system was
working well and there were no stock out situations at the facility level albeit, challenges still
exist.
• Large purchases outside the Medical Stores System
• Commodities obtained through direct procurement are warehoused at a cost to the
CMS.
• Information on quality, availability and pricing of medical commodities and supplies
is available but inaccessible in the public domain leading to low consumer awareness
• Large disparities in health commodity prices across the country
• Difficulties in aligning the procurement cycle to the budget due to the huge budget
cuts during the year. This negatively impacted on the efforts to meet procurements
targets.
The April 2008 Aide memoire recommended that a study on the extent and causes of the debt
in the supply chain should be done and remedial actions to be undertaken.
The policy thrust in 2009 therefore is to facilitate visible follow through on procurement
practices and allow broad stakeholder engagement.
Priority Activities
• Manage 2009 procurement portfolio and develop 2010 procurement plan
• Set up mechanisms for reviewing the execution of the procurement portfolio response
to budgetary reviews
• Conduct study and develop standard pricing policy framework for goods and services
in the health sector
• Refine and improve alignment of procurement plans to budget execution.
• Collaborate with the Public Procurement Authority (PPA) in training different cadres
of staff in the use of the PPA Manual and the MOH Procurement Procedure Manual
which has recently been revised to conform to the provisions of the newly enacted
Procurement Law (ACT 663)
• Complete the computerization of the Central Medical Stores and subsequent
networking with the Regional Medical Stores and Teaching Hospitals to improve
logistics management
• Implement the Standard Treatment Guidelines and Essential Medicines List in health
facilities as a policy tool for cost containment
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