The Cost of Lower Medication Tenders
Panama’s Public Health Sector leans on Smaller Medicine Purchases, Raising Concerns
Table of Contents
Panama’s public health sector has allocated over $323,000 to smaller medicine purchases in the first three months of the year, exceeding investments in major acquisitions by the Social Security fund (CSS) and the Ministry of Health (MINSA), according to data from the Panamacompra portal.
This trend indicates a rapid consumption and replacement of drugs, but also highlights a fragmented supply strategy where smaller, urgent purchases are prioritized over large, centralized tenders.
Supply Chain Concerns
The reliance on smaller purchases suggests potential organizational shortcomings in the supply chain, forcing health institutions to frequently resort to urgent acquisitions to meet demand.
Gennaro Marino, former president of the Association of Representatives-Distributors of Pharmaceutical Products, emphasized the importance of adequate planning for effective medicine acquisition within the public health sector. He told a local news outlet that a major tender from the ministry had yet to be released, and the CSS was relying on the previous year’s tender.
Enma Pinzón, president of the Panama Rheumatoid Arthritis Foundation and member of the national Federation of Critical, Chronic and Degenerative Diseases associations (Fenaeccd), echoed these concerns, citing organizational issues within the authorities.
Pinzón noted that Law 419 mandates that planning and specifications for medicine purchases should be completed a year in advance. “It is indeed already the time when they begin to see the 359 medicines that were bought in December 2023, as the amounts contemplated in the contracts will not reach to end the year 2025, even though it was projected to two years. Our organization has already expressed this concern in the high spheres of the CSS and we are waiting for these procedures to begin,” she said.
Recent Acquisitions and Future Plans
According to the CSS,its last major tender using the Single Price System was No. 2024-7-0-01-08-CL-000005, held in October of the previous year.
This acquisition,costing approximately $123 million,covered 220 of the 359 medicine lines managed by the entity under the single price system. Other purchases have been global,according to Panamacompra data.
However, a new tender is planned. Enma Pinzón and Alexa Espino, purchasing director of the CSS, announced that the next major tender for lines under the unique price system is scheduled for May 19, for over $38 million, covering 16 lines of new medicines requested by FENAECCD.
Espino stated that the smaller tenders are “usual procedures” carried out by health executing units at the central level when necessary, rather than an organizational issue. She also noted that supplier breaches in medication delivery contribute to the need for smaller acquisitions.
Data indicates that MINSA has focused on smaller-scale acquisitions to supply health center pharmacies since the beginning of the year, totaling over $130,000.
Efforts to reach Eric Conte,director of supply at MINSA,for comment were unsuccessful by press time.
Neither MINSA nor CSS have engaged in joint purchases during this period, leading them to rely on faster, more specific minor tenders to avoid medication shortages.
Marino stated that institutions are likely resorting to direct purchases due to the absence of a major tender.
Seeking Solutions
Jaime Olive, president of the national College of pharmacists, explained that the lack of competitive tender processes allows bidders to set higher prices and favor their own interests over those of public institutions and citizens.
“With minor purchases we are allowing suppliers to continue imposing their conditions, without forcing them to improve their offers.This is precisely what is currently happening,” Olive said.
Olive believes a solution lies in creating a mechanism for more organized, obvious, and efficient drug purchases.
“We must find a way to put into practice what is already established in the law. The big question is: why are we not doing? We cannot continue repeating the same mistakes,” Olive questioned.
Olive emphasized the need to move beyond improvisation and implement properly planned acquisition processes that adhere to principles of competence, equity, and quality.
He warned that delays in addressing this issue will continue to affect the supply of medicines and erode public trust in the health system. “We cannot afford to continue in this inertia.”
Another proposed solution involves reverse tenders,where suppliers compete by offering the lowest price for required medications,with the state setting a reference price to ensure suppliers still profit.
Experts agree that the current situation presents an urgent challenge for health authorities: to break the cycle of improvisation, strengthen purchase mechanisms, and ensure an efficient and transparent supply of medicines.
The health of the population and the credibility of public institutions depend on more than just temporary solutions like small tenders. Improved planning is not only an administrative necessity but a critical responsibility.
Okay, here’s a comprehensive, Q&A-style blog post based on the provided article, designed to be engaging, informative, and SEO-kind.
Panama’s Medicine supply Crisis: An Expert’s Analysis and Solutions
(Image: A photograph of a pharmacists working in a healthcare setting or of medicine bottles or prescriptions.)
Introduction:
In Panama, the public health sector is currently facing a concerning trend: an increased reliance on smaller, more frequent medicine purchases rather than large-scale tenders. This shift, while intended to ensure the availability of essential medications, raises critical questions about the efficiency, transparency, and long-term sustainability of the contry’s healthcare system. This expert analysis, presented in a clear question-and-answer format, delves into the core issues, explores the underlying causes, and highlights potential solutions to address this pressing challenge.
Q: What is the main issue that Panama’s public health sector is facing?
A: The central problem is a shift towards a higher frequency of smaller medicine purchases by the Ministry of Health (MINSA) and the Social security Fund (CSS). Data from the Panamacompra portal reveals that over the first three months of the year, over $323,000 was spent on these smaller purchases, exceeding investments in major acquisitions. This indicates a reactive approach to drug supply, often utilizing “urgent acquisitions” to quickly get medication, rather than a proactive, planned strategy with larger tenders.
Q: Why is the reliance on smaller purchases concerning?
A: This trend is concerning for several intertwined reasons:
Fragmented Supply Strategy: It highlights a fragmented approach to supply chain management, where the focus shifts from strategic, large-scale procurement to a series of smaller, more immediate purchases.
Potential Organizational Shortcomings: This reliance can point to potential organizational issues within the supply chain,the lack of readiness of planned tenders.
Economic Implications: Smaller purchases often lead to higher prices. Without the competitive bidding of larger tenders, suppliers may set their own conditions, and the government could end up paying more per medication.
Transparency Concerns: Larger tenders offer greater transparency and chance for public scrutiny.The shift to smaller purchases could obscure procurement processes.
Q: What’s driving this shift towards smaller medicine purchases?
A: Several factors appear to be contributing:
Lack of Major Tenders: Both the MINSA and CSS haven’t engaged in major tenders. The CSS relied on its last large tender dated October of the previous year.
Urgent need to Replenish Stocks: There’s a constant need to replenish medicine stocks due to a variety of factors including medication shortages and anticipated demand.
Supplier Breaches: Supplier breaches in medication delivery.
Absence of Joint Purchases: Neither MINSA nor CSS have engaged in joint purchases.
Q: What do experts say about the current medicine procurement practices?
A: Experts are deeply concerned about this trend:
Gennaro Marino (former president of the Association of Representatives-Distributors of Pharmaceutical Products) emphasizes the importance of adequate planning.
Enma Pinzón (president of the Panama Rheumatoid Arthritis Foundation and member of FENAECCD) says that the law mandates that planning for purchases must be prepared a year in advance.
Jaime Olive (president of the national College of Pharmacists) states that the lack of competitive tender processes allows bidders to set higher prices and favor their own interests.
Q: What are the potential consequences of the current situation?
A: Continuing these practices can result in:
Higher Costs: As mentioned before,smaller purchases are more expensive.
Medication Shortages: delay in ensuring adequate supplies to avoid shortages.
Erosion of Public Trust: The public’s faith in the health system will degrade.
Q: What actions are authorities taking to address the problem?
A: Currently, the authorities haven’t engaged in joint purchases. The CSS is planning a new tender for May 19, covering 16 lines of medicines requested by FENAECCD. MINSA also has focused on smaller-scale acquisitions to supply health center pharmacies.
Q: What solutions and strategies are being proposed to improve Panama’s medicine supply chain?
A: Several solutions have been suggested:
Strengthening and planning: The need for a more organized, obvious, and efficient drug-purchasing mechanism, including greater planning.
Adherence to Laws: The importance of executing what is already required by the law.
Reverse Tenders: This mechanism allows suppliers to bid and offer the lowest price for required medications with the state setting a reference price.
Improved Planning: More efficient planning is vital to the administration and a critical responsibility.
Q: What’s the broader meaning of this issue for the Panamanian population?
A: The efficient and transparent supply of medicines is basic for:
Public Health: Ensuring that citizens receive the crucial medicines as needed.
Health System Credibility: Maintaining public trust.
* Economic Sustainability: Ensuring the system operates efficiently and avoids unnecessary costs.
Q: What are the key takeaways for a reader of this analysis?
A: Three key takeaways:
- Panama’s public health system is facing a critical challenge in its medication acquisition strategy.
- Smaller purchases, while providing short term solutions, expose the lack of planning.
- Implementing solutions that are based on transparency and planning are vital to securing lasting and efficient medicine supply.
(image: The Panama flag superimposed over a doctor shaking hands with a patient.)
Conclusion:
The issues surrounding medicine procurement in Panama are not just administrative issues; they profoundly affect the health and well-being of the population. Implementing the proposed solutions, prioritizing transparency, and emphasizing proactive planning are indispensable to ensure a reliable and affordable supply of medicines. This is an urgent imperative for health authorities to reinforce and improve public trust in the entire system.