Procedures of Drug Purchases

The procurement of drugs in healthcare involves a systematic process to ensure the availability of safe, effective, and cost-efficient medications. The procedures for drug purchases encompass various steps, including drug selection, short-term and long-term planning, tender/e-tender processes, quotations, and more. Here is a detailed breakdown of each component:

1. Drug Selection

Formulary Development:

   Establish a drug formulary based on therapeutic efficacy, safety, and cost-effectiveness.

   Formulary decisions are often made by a multidisciplinary Therapeutic Committee.

Clinical Guidelines:

   Align drug selection with clinical guidelines and protocols to ensure evidence-based practice.

2. Short-Term and Long-Term Planning

Short-Term Needs:

   Assess immediate drug needs based on patient acuity, disease prevalence, and emergency situations.

   Identify critical medications for immediate procurement.

Long-Term Planning:

   Consider future healthcare trends, emerging diseases, and changes in patient demographics.

   Plan for the acquisition of drugs with long shelf lives and anticipate potential shortages.

3. Tender/e-Tender Process

Tender Documentation:

   Prepare comprehensive tender documents specifying drug requirements, technical specifications, and contractual terms.

   Clearly outline evaluation criteria.

Advertising:

   Advertise the tender in accordance with regulatory requirements and organizational policies.

Bid Submission:

   Interested suppliers submit bids in response to the tender.

   Bids typically include pricing, delivery terms, and compliance with specifications.

Bid Evaluation:

   A procurement committee evaluates bids based on pre-defined criteria.

   Criteria may include cost, quality, delivery time, and compliance with specifications.

Award of Contract:

   The contract is awarded to the supplier with the most favorable bid.

   Consideration is given to both cost-effectiveness and quality assurance.

4. Quotations

Quotation Requests:

   For smaller or urgent purchases, healthcare institutions may request quotations from multiple suppliers.

Evaluation:

   Evaluate quotations based on factors such as cost, delivery time, and product quality.

Vendor Selection:

   Select the vendor with the most competitive and suitable quotation for the purchase.

5. Vendor Qualification

Supplier Assessment:

   Assess potential suppliers based on reliability, reputation, regulatory compliance, and product quality.

Vendor Registration:

   Establish a vendor registration process to streamline future procurement processes.

6. Purchase Orders

Issuance:

   Issue a purchase order to the selected supplier outlining the quantity, price, and delivery terms.

Confirmation:

   Suppliers confirm the purchase order, acknowledging their agreement to supply the requested drugs.

7. Quality Assurance and Inspection

Quality Control:

   Implement measures to ensure the received drugs meet quality standards.

Inspection:

   Physically inspect drug shipments to verify compliance with specifications.

8. Inventory Management

Stock Monitoring:

   Regularly monitor drug stock levels to avoid shortages or excess inventory.

Technology Integration:

   Utilize inventory management systems for real-time tracking and automated replenishment.

9. Payment Process

Invoice Verification:

   Verify supplier invoices against the delivered quantity and quality.

Payment Terms:

   Adhere to agreed-upon payment terms with the supplier.

10. Record-Keeping and Documentation

Documentation:

   Maintain detailed records of procurement activities, including tender documents, purchase orders, invoices, and quality assurance reports.

Audits:

   Conduct regular audits to ensure compliance with procurement policies and regulations.

11. Continuous Improvement

Feedback Mechanism:

   Establish a feedback mechanism to gather input from end-users, assess supplier performance, and identify areas for improvement.

Policy Review:

   Regularly review and update procurement policies to adapt to changing healthcare needs and industry trends.

By following these comprehensive procedures, healthcare institutions can enhance transparency, efficiency, and patient safety in the drug procurement process. It ensures that the right medications are available at the right time, meeting both immediate needs and long-term healthcare goals.

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