PESHAWAR: A major shift in the health department’s drug procurement policy for public sector hospitals in 2024-25 has saved almost half of the costs reported last year, say officials.

They told Dawn that the health department had streamlined the drug procurement process for hospitals after a misappropriation of Rs1.9 billion was reported from a total purchase of Rs5.5 billion last year.

The officials said in 2023-24, the department purchased Rs5 billion medicines before an inquiry unearthed embezzlement in funds that led to changes in the drug procurement strategy.

They said a major shift in the benchmark pricing strategy of the Medicine Coordination Cell played a pivotal role in the savings reported in 2024-25 compared to the previous financial year 2023-24 during which the benchmark was based on the maximum retail price (MRP), causing a huge financial loss to the government.

Officials say health department streamlined drug procurement process

The officials said this year, the department purchased Rs6 billion medicines for primary and secondary health centres through MCC, which was a health department body tasked with procuring drugs and medical supplies.

They added that the benchmark for the selection of goods was fixed by criteria that required the trade price to be at least 15 per cent lower and at most 45 per cent lower than the prevailing market price of the items.

The officials said the adjustment to the trade price by MCC for the current fiscal enabled the health department to secure medicines and medical supplies at prices that were more reflective of the actual market value and thus, ensuring better value for taxpayers’ money.

They added that in the latest procurement, the MCC achieved significant progress in streamlining the process, which not only led to major savings but also ensured the procurement of high-quality medicines and medical supplies.

The officials said the procurement process was executed by carefully selected committees whose members were chosen based on their integrity, honesty, and vast experience, which reinforced public trust and ensured that the selection of medicines and medical supplies was conducted with the utmost professionalism.

They said the products selected in the current fiscal were sourced at rates almost 80 per cent lower than those of the previous year, and that price reduction translated into considerable savings, which was expected to significantly alleviate the financial burden on public health resources.

The officials said all products selected this year were also a testament to the MCC’s commitment to quality, as all items were either sourced from US FDA-approved manufacturers, stringent regulatory authorities, European suppliers, or recognised brand leaders in Pakistan.

“This focus on quality ensures that healthcare facilities in Khyber Pakhtunkhwa have access to reliable, effective, and internationally recognized medicines and medical products, thereby improving patient care across the province,” an official told Dawn.

He said by optimising the procurement process and introducing cost-saving measures, the department had saved nearly 50 per cent compared to the previous financial year.

“These savings will enable the health department to allocate more resources toward enhancing overall healthcare infrastructure while maintaining a focus on delivering high-quality medical care to the people of the province,” he said.

The officials claimed that the MCC’s efforts to improve its procurement strategies reflected the province’s determination to meet the growing healthcare needs of its population, ensuring that funds are spent wisely and effectively.

They said as the province continued to invest in its healthcare system, the MCC’s proactive approach to procurement sets an exemplary standard for other provinces and organisations to follow.

The officials said the success of the current year’s drug procurement cycle marked a significant milestone in the province’s ongoing efforts to provide accessible, affordable and high-quality healthcare to residents.

Published in Dawn, February 4th, 2025