The Philippine Pharma Procurement Inc. (PPPI) and the Anti-Red Tape Authority (ARTA) have proposed an arrangement for government entities to procure their pharmaceutical requirements through the PPPI.
Undersecretary and PPPI President and Chief Executive Officer (CEO) Maria Bianca Kim Lokin, said in an interview with the Malaya Business Insight on Wednesday, that Secretary and ARTA Director-General Ernesto Perez convened an inter-agency meeting, last May 14, to discuss how ARTA can help push the PPPI as the preferred procurement government agency for medicines, medical equipment, ambulances and medical devices.
“If it is in the interest of ‘ease-of-doing-business’ and efficiency, as well as cutting red tape, ARTA has an expansive mandate that can allow them to recommend and enforce PPPI as the preferred means of procurement,” Lokin said.
Lokin said the PPPI has been beset with several challenges, including the reluctance of government agencies to use it as their procuring entity. “They prefer to do it themselves, even if it is costlier for them to do so,” she said, noting that some local government units (LGUs) have been doing the sourcing of the pharmaceutical products despite insufficient knowledge of government procurement.
Lokin added that PPPI has remained relatively unknown even among government agencies since its creation as PPI in 2005.
“Very few actually know who we are and what we do,” Lokin said, adding the agency has been proactively approaching government agencies to present and pitch what PPPI can offer.
Lokin said the PPPI has not been getting subsidies from the national government and could therefore not spend to promote its services to other government agencies.
In seeking the ARTA’s support, Lokin said the PPPI can ease and expedite business processes in the purchase of medicines and medical tools and equipment by government agencies, government-owned and controlled corporations (GOCCs) and public hospitals.
“As the only pharmaceutical GOCC, we also cater to the private sector like private hospitals and clinics, even corporations which have an annual budget for procurement of medicines and the like,” Lokin said.
Without disclosing the names, Lokin said the PPPI’s existing clients include some public hospitals, some LGUs, most notably those in the Bangsamoro Autonomous Region of Muslim Mindanao. It has also serviced big private hospitals for partial procurement of medicines.
Lokin explained the PPPI has been able to procure medicines at lower prices. “Because we mostly deal with generics, our medicines are one of the lowest if not the lowest in the market. We source medicines from India and even local suppliers,” Lokin said.
She added that the PPPI could further bring down actual costs through pooled procurement for large orders. “The savings of government agencies when they procure through us are not only the cost of medicines, but (they) also (save on) operational costs, like convening a bids and awards committee, the secretariat, and more,” Lokin said.
Agency-to-agency mode of procurement has proven to be much simpler, Lokin said, since PPPI would only require a purchase order and the certificate of the availability of funds.
According to Lokin, Perez acknowledged the strategic importance of PPPI in the procurement of pharmaceutical supplies and its capability to offer medicines at lower prices than commercial pharmaceuticals.
ARTA said Perez emphasized the agency’s commitment to assist PPPI in interagency coordination to streamline procurement processes.
