LHW Systems Review - Oxford Policy Management

Logistics management systemInsufficient procurementThe budget for drugs and contraceptives in the PC-1 from the government’s budget was Rs.5,223.421 million for the financial years 2003–2008. By mid-2008, this budget wasunderspent by Rs. 1,926.18 million. 50 Drugs and contraceptives were planned at a 24percent share of the total budget. Actual expenditure resulted in there only being an 18percent share. The PC-1 specifies the monthly LHW requirement for drugs and medicines.No item was procured to the quantity forecast per LHW in the PC-1 (Table 6.2).Table 6.2Difference between PC-1 monthly requirement for medicine, andactual procured per LHWName of ItemParacetamol tabletsAccounting unitPack of 200 tablets, instrip/blisterQuantityprocuredaccountingunits2003–08Averageaccountingunitsupplied permonth perLHW (1)Monthly needas specified inthe PC-1 byaccountingunitDifferencebetweenmonthlyrequirementin PC-1 andactualprocured64,910 0.81 1 -0.19Paracetamol syrup Bottle of 60ml, with carton 627,270 7.82 10 -2.18Chloroquine tabletsPack of 100 tablets, instrip/blister46,626 0.58 1 -0.42Chloroquine syrup Bottle of 60ml, with carton 317,767 3.96 5 -1.04Ferrous fumarate+ folic acid tabletsPack of 1,000 tablets, instrip/blister57,026 0.71 1 -0.29Antiseptic lotion Bottle of 50ml, with carton 74,815 0.93 1 -0.07Cotrimoxazole syrup Bottle of 50ml, with carton 317,302 3.96 5 -1.04Eye ointment Tube of 4 gm, with carton 556,194 6.94 10 -3.06Vitamin B complex syrup Bottle of 120ml, with carton 464,586 5.79 7 -1.21Benzyl benzoate lotion Bottle of 60ml, with carton 118,524 1.48 2 -0.52Mebendazole tabletsPack of 100 tablets, instrip/blister39,901 0.50 1.5 -1.00Cotton bandage Pack of 12, with packing 68,855 0.86 1 -0.14Piperazine syrup Bottle of 30ml, with carton 287,091 3.58 5 -1.42Oral rehydration salts Pack of 20 sachets 61,778 0.77 1 -0.23Oral contraceptive pills Cycle 484,378 6.04 10 -3.96Notes: (1) The average number of LHWs recorded on the PSP data base for the financial years 2003–2008including those funded by WHP and RHP = 80,191.Source: LHWP, MoH.Timeline for procurement and deliveries of supplies, FY 2007/08• March 2007 Forecast for supplies completed• July 2007 Request for tender published in the newspaper• The quantities to be tendered for was based on the total requests from the PPIUsand was sufficient to supply 97,955 LHWs for twelve months, to at least the leveldefined as the monthly requirement in the PC-1. The exceptions were mebendazoleand chloroquine tablets. Given the survey data on the dispensing patterns of LHWs,for these two items, this makes sense (Table 6.3).• September 2007 Financial opening of tenderso The technical scrutiny of the tenders by the Procurement Committee took twomonths, and the financial opening of the tenders took place in September 2007.• January 2008 Procurement Committee awards contracts50From the Statement of Expenditure, FPIU, LHWP35