This stream of research focuses on different models of strategic purchasing, with a focus on tendering. In a basic tendering system, a health insurer buys generic drugs in bulk from the manufacturers offering the best prices.
Tendering and other drug procurement approaches are increasingly used to stimulate competition between generic drug manufacturers and to control rising drug spending. Procurement is a powerful tool to obtain better value for money when purchasing medicines.
There are different types of procurement strategies available and for countries to choose the most appropriate set of tools, it is important to understand their strengths and weaknesses and system requirement for each strategy to work.
MTRG has been involved over the years on different projects studying procurement tools and their ability to maximise value of public spending.
- Sorenson, Corinna and Kanavos, Panos (2011) Medical technology procurement in Europe: a cross-country comparison of current practice and policy Health Policy, 100 (1). 43-50. ISSN 0168-8510
- Panos Kanavos, Liz Seeley and Sotiri Vandoros, Tender systems for outpatient pharmaceuticals in the European Union: Evidence from the Netherlands, Germany and Belgium, 2009, EMINet
- Wouters, OJ, Kanavos PG, McKee M (2017). Comparing generic drug markets in Europe and the United States: Prices, volumes and spending. The Milbank Quarterly (in press).
- Wouters OJ, Kanavos PG (2017). A comparison of generic drug prices in seven European countries: a methodological analysis. BMC Health Services Research, 17(242). 1-7.
Health-care reform in Cyprus: In 2014, the Cypriot Ministry of Health sought input from LSE Health researchers on the ongoing health-care reform in the country. Cyprus has one of the longest-running tendering systems for medicines in the world, and the objectives of the research were: (i) to review the current system of pharmaceutical care in the private and public sectors in Cyprus in terms of the availability and affordability of medicines, (ii) to explore how the public and private markets could be efficiently merged in the national health system, which is expected to be implemented in 2017 and (iii) to assess the key barriers to the implementation of the new system.
World Health Organization Regional Office for Europe; Ministry of Health of the Republic of Cyprus
- Wouters, Olivier J. and Kanavos, Panos G. (2015) “Transitioning to a national health system in Cyprus: a stakeholder analysis of pharmaceutical policy reform.” Bulletin of the World Health Organization, 93 (9). 606-613.
- Wouters, Olivier J. and Kanavos, Panos G. (2015) “Transitioning to a national health system in Cyprus: a stakeholder analysis of pharmaceutical policy reform.” Presentation, 3rd International PPRI Conference, WHO Collaborating Centre for Pharmaceutical Pricing and Reimbursement Policies, 13 October 2015, Vienna, Austria.
- Kanavos, Panos G. and Wouters, Olivier J. (2014). “Pharmaceutical policies in Cyprus: A review of the current system and future options.” Nicosia, Cyprus: Ministry of Health. 65 p.
1. Strategic procurement, preparation of background paper for WHO EURO consultation (September 2016)
Expected Outputs: Challenges and opportunities in improving access to medicines through efficient public procurement in WHO European region, World Health Organization Regional Office for Euro
Expected Impact: To inform the next steps in WHO EURO work with Member States in the area of procurement
2. The MTRG is evaluating the impact of tendering in South Africa on drug prices, drug spending, medicines availability, and competition. This research is being conducted in collaboration with the South African National Department of Health.
3.The MTRG is also looking at the effects of tendering on stakeholders, including generic and research-based drug manufacturers, pharmacists, and patients, as well as the operational requirements of tendering systems. This research pertains to both in-patient and out-patient settings.
4. The MTRG is conducting comparative analyes of tendering systems in selected European countries, including Cyprus, Denmark, Germany, the Netherlands, and Sweden.
Evaluating the impact on prices, volume, availability, and appropriateness of care of different procurement methods
Olivier Wouters, Alessandra Ferrario and Panos Kanavos