MINISTRY TO ADDRESS MONOPOLY, HIGH COSTS OF ESSENTIAL MEDICINES
This can increase bargaining power of purchasers, reduce prices, says minister
THE Health Ministry is looking into the possibility of implementing a pooled procurement mechanism for essential medicines to address the issue of monopoly, which can increase the cost of drugs supplied to government hospitals.
Its minister, Dr Dzulkefly Ahmad, said the pooled procurement concept for pharmaceuticals could increase purchasers’ bargaining power, thus reducing prices of medicines.
“If we purchase in bulk, we will have better bargaining and negotiation power, and costs will come down,” he said at Kumpulan Media Karangkraf here on Monday.
He had earlier said the move to review existing medical supply concession agreements to government hospitals was to optimise the supply chain and ensure a “win-win” situation for parties involved.
“All the contracts are being reviewed to achieve supply chain optimisation and better value. The government is committed to achieving this.”
On whether the government was mulling to procure medicines and consumables directly from manufacturers or suppliers to address the issue of monopoly, Dr Dzulkefly said the ministry was looking into the matter.
Prior to this, Klang member of parliament Charles Santiago had lodged a report with the Malaysian Anti-Corruption Commission on alleged monopoly of tender awards for medical supplies to the Health Ministry from 2013 to 2016.
He handed over 13 documents of 150 pages that included the names of political figures, senior ministry officials and individuals connected to politicians believed to be agents or middlemen for three pharmaceutical companies.
Dr Dzulkefly said the ministry welcomed the probe.