Cost Impact of Purchasing Pharmaceuticals Jointly In the Public Health Sector In Jordan

This study aims at investigating the cost impact of purchasing medicines jointly by the Joint Procurement Directorate (JPD). The pharmaceutical sector in Jordan is considered a high priority to be looked at by the government as it represents almost 35% of health spending. Double purchase is still considered a major problem that led to higher spending and poor availability of medicines. Joint Procurement Directorate (JPD) was established in Jordan in 2004 and the first joint tender was issued in 2007. Methods: Medicine lists of purchased quantities and their tender winning prices were obtained for 2006 and 2007. Defined Daily Dose (DDD) was used for comparing the costs of purchased drugs in 2006 and 2007 by converting actually purchased quantities into DDDs for each dosage form for each product for 2006 and 2007. Having DDDs for all dosage forms, estimated cost savings were calculated for each product assuming that the same quantities purchased by each participating party in 2006 will be purchased through the JPD in 2007. Results: Estimated savings achieved were 5.2% which could be increased to 17% after excluding one item due to raw material price increases. Conclusions: Purchasing pharmaceuticals through JPD is recommended to reduce spending and improve availability. .