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HOW DO YOU MOTIVATE DRUG SUPPLIERS TO SUBMIT TENDERS?

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European Statement

Selection, Procurement and Distribution

Author(s)

Hanne Fischer, Bente Dam, Bitten Abildtrup, Helle Pasgaard Rommelhoff, Lars Munck

Why was it done?

Challenges with drug supply is a global as well as a national problem. A decline in interest among the suppliers to submit tenders in our country, has been detected. This is more profound compared to other European countries due to a small market and a strict interpretation of EU public procurement rules.

What was done?

The aim of the study was to evaluate whether three selected contract types motivated suppliers to submit tenders, submit with a lower price and whether they affected national backorders.

How was it done?

In 2015 and 2016, the national purchasing authority for all drugs used in all the public hospitals, tested three new contract types on 18 drugs: a) Purchase obligation for the national purchasing authority b) Limit on reimbursement obligation for replacement drug and c) Two national suppliers of one drug. Contract type a and b aimed to reduce the suppliers’ economic risk and c was primarily tested to secure national drug supply.

Suppliers, who had the opportunity to submit tenders for the new contract types, were included in the study. For the 2015-tenders’ 7 of 8 semi structured interviews were carried out and for the 2016-tenders, 10 electronic questionnaires were provided (50 % respond rate). In total 2 parallel importers and 15 generic suppliers participated.

What has been achieved?

The respondents reported that contract type a motivates to submit tenders and submit with a lower price. It might reduce national backorders due to a predictable sale.

The generic respondents reported that contract type b reduces their economic risk, which motivates to submit tenders and due to that might reduce national backorders.

The respondents reported that contract type c did not have considerable effect on the national supply, since the forecast and amount of orders from both suppliers is fixed months in advance.

What next?

In order to address the challenges with drug supply, new types of contracts, which reduce the suppliers’ economic risk, will be further implemented in future national tenders.

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