This year medicines procurements will be transferred to international organizations by July 20, 2016

This year medicines procurements will be transferred to international organizations by July 20, 2016

The Ministry of Health will form and submit the current year budget for the procurement of medicines and medicinal products to international organizations by 20-th of July.

This was announced by the Deputy Minister of Health Viktor Shafranskyi during a meeting of the Committee on Public Health. According to him, the Ministry of Health will gather all the information on need in medicines from Oblasts by July 13, and by July 20 will delegate all medicines procurement of this year to international organizations and transfer money to their accounts.

This year, international organizations will procure medicines and medicinal products under all state programs. The budget for 2016 that will receive international organizations, accounts approx. UAH 4 billion.

Such a decision was made by the Ministry of Health based on the successful experience of medicines procurements 2015, in the results of which international organizations have saved UAH 790 million.

«Procurement of medicines through international organizations allowed breaking one of the largest and oldest of corrupt money-making schemes that exists in our country. Up to 40% of the funds allocated for medicines, settled in pockets of officials or laundered through shell companies. We see the negative attitude to the fact that international organizations delivered medicines in Ukraine too late. But 8 months MOH sabotaged the process of developing of bills and transferring of the function of medicines procurement. This year should this function should be transferred to the international organizations as soon as possible in order ill patients received medications on time,» said Yegor Sobolev, the Chairman of the Committee on Preventing and Combating Corruption during the round table discussion devoted to the results of the medicines procurement through international organizations.

We would like to remind that medicines procurement 2015 in Ukraine were carried out through three procurement agencies: UNDP, UNICEF and Crown Agents. UNDP carried out the procurement of medicines for the treatment of tuberculosis, hemophilia, viral hepatitis, rare diseases and HIV diagnostics. Crown Agents provided medicines for oncology in children and adult. UNICEF purchased vaccines and antiretroviral therapy.

According to Pavlo Rozenko, the Vice Prime Minister of Ukraine, international procurement of medicines in 2016 for budget funds should start on time with strict observation of the medicines delivery schedule.

«It was strategically right to delegate procurement of medicines to the international organizations. The international procurement of medicines in Ukraine has no alternative. With this in mind one need is to gather accurate information on the need in medications, to form a relevant list and forward it to the international organizations in order to initiate the procurement process for funds of 2016», stated Pavlo Rozenko during the round table discussion devoted to the results of the medicines procurement through international organizations.

It should be recalled that in 2015 the Ministry of Health for the first time began to procure medicines through international organizations. The contracts worth a total of more than USD 2.2 billion were signed with three international organizations — the United Nations Children’s Fund (UNICEF), the UNDP and the Crown Agents.

«One of the problems with international procurements is the fact that the executives haven’t explained to the subordinate entities the way of realization of the new legislation initiative. We insist that the Ministry of Health together with the State Fiscal Service urgently clarify the order of the release of all links of the supply chain from VAT,» said Lana Sinichkina, the partner of the Law Firm «Arzinger».

In general, the international organizations managed to save approx. UAH 790 million (USD 34.2 million) on procurement of the medicines as compared to the MoH prices in 2014. In addition as a result of the procurement in 2015 three international organizations managed to save more than USD 200 million on their accounts, which would be redistributed for procurement of additional medicines.

The UNDP procured medicines cheaper by UAH 250 million than MoH would have done it for 2014 prices. The procurement agency British Crown Agents procured medicines for treatment of oncology children and adults averagely by 45% cheaper than MoH did it last year. It is almost by UAH 413 million (USD 19 million) less than MoH would have spent to procure the same medicines for 2014 prices. According to UNICEF, the organization managed to save USD 4.9 million on procurement of ARVs and vaccines. At the same time UNICEF invested more than half a million dollars in specialized cold chain equipment for proper storage of vaccines at the central and regional levels, which together with the cost of logistics allowed saving more than USD 825 thousand of the state budget.

It is worth mentioning that Kazakhstan is planning to adopt the experience of Ukraine in the procurement sphere proving that Ukraine is capable to conduct reforms and serve as a model for other states.

For your information:

  • On March 19, 2015 the Parliament of Ukraine approved amendments to the Law of Ukraine «On State Procurement» by which the procurement of the medicines was delegated to the international organizations (Law No 269-VIII).
  • Contracts between the Ministry of Health (MoH) and the international procurement organizations — the United Nations Children’s Fund (UNICEF), the UNDP and the Crown Agents were signed in the end of 2015.
  • The total amount allocated to the international organizations for procurement of the medicines for the programs on HIV/AIDS, TB, virus hepatitis, children haemophilia, adult and children oncology and orphan diseases amounted to UAH2,2 billion.

Contact person: Alyona Romanyuk 093 72 10 800, aliona.r@patients.org.ua

 

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