Procurement and Supply Management Potential roles for IHP
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Procurement and Supply Management Potential roles for IHP+ Steering Committee 12 December 2014 1
Rationale for IHP+ engagement • Importance in health service delivery • Leverage better use of domestic health spending as well as external funds • Multiple parallel systems: inefficient, wasteful, unsustainable • Difficult area: some countries far from having procurement capacity DPs want to use • Scope for progress: (at least) harmonisation of supply chains
Current major supply chains in the Myanmar health system
Issues from CHTM 2014 • Countries at very different stages – Myanmar example: developing a single supply chain strategy for all partners to support – Ethiopia example: High % of DP funded procurement through national agency, gradual strengthening of systems – Guinea Bissau, Chad et al struggling to reform PSM, with fragmented support • Issues include – Performance improvements are hard to sustain – how to respond to declines (corruption, crises)? – Outsourcing to private sector – requires skills in contracting; willing, competent providers; recurrent financing – Drug quality assurance - continuing need to strengthen – Capacity building & knowledge transfer needed
Global procurement mechanisms • Benefits of lower prices, faster procurement appreciated (but sometimes countries can buy cheaper) • Multiple mechanisms which work differently a challenge to learn at country level • May be inconsistent with country regulations (registration, procurement process etc) • Scope to identify combined effects and good practices
Roles for IHP? • Inter-agency Supply Chain Group (ISG) has identified areas for collaboration including joint PSM planning for Nigeria and DRC, common performance indicators • ISG is an informal global group, no governance or funding (so far) • IHP+ could review progress and learn lessons – Progress at country level in harmonising PSM support and strengthening systems: joint procurement assessments, joint plan for support, reducing parallel and inconsistent systems, use of national procurement – Feedback from countries on effect of multiple, diverse global procurement mechanisms, how to improve
Questions to the Steering Committee • Are these the most relevant issues for IHP+ to address? • What are highest priorities for IHP+ efforts? • How to take forward? Suggestions – Case studies (at country request) e. g. progress in Myanmar, DRC and/or Nigeria; other volunteers – Engage countries, implementers and CSOs to oversee case studies, spot gaps (as steering or working group)
