A two-year purchasing system versus a one-year purchasing system applied to medications public tenders in Jordan: A descriptive and cost-saving retrospective study
Pharmacy Practice
Abstract
Background: Governments are concerned about medication costs and the availability of medications in healthcare systems. Medications shortages lead to added expenses, such as transportation costs and purchasing from a single supplier. No previous research has been conducted with the Jordanian Joint Procurement Department (JPD) to address this issue. Objective: This study aims to investigate Jordan's purchasing system and provide suggestions for improving medication availability, in particular, to reduce costs, stock-outs, and shortages of medications. This study compares the one-year purchasing versus the two-year purchasing system for public tender medications. Study design: The present study followed a retrospective study design, with questionnaires for validation and conduct. We also conducted a cost analysis to compare the savings of purchasing medications for one year with two years. Method: A 15-question questionnaire was meticulously created and extensively validated by experts in the field for both face and content validity. The questionnaire was then completed by pharmacists from the Jordan Food and Medication Association and JPD. Furthermore, statistical analytical methods were used to identify the most optimal cost-benefit scenario for medications. Results: In the survey, 81 pharmacists participated and shared their views on the purchasing system in the JPD. As per the majority of the participants (71.6%), the two-year purchasing system ensures the availability of medications and minimises stock-out situations compared with the one-year system. Additionally, 79.0% of the sample said that purchasing a larger quantity of medications is beneficial. The study findings showed that following the two-year purchasing system, a saving of 5,218,875.92 JD was achieved, which accounted for 2.5% of the total savings. Conclusion: This novel study captures pharmacists' views on JPD procurement systems, highlighting the cost benefits of the two-year model over the one-year model. It urges policymakers to shift, enhancing efficiency.
Keywords
- procurement
- cost analysis
- purchasing
- group purchasing
- cost-benefit analysis