Pharmaniaga Monopoly : Minister YB Donno said onething, Deputy Minister says something else, Minister of Finance says something else.

https://www.msn.com/en-my/news/national/does-pharmaniaga-hold-a-monopoly-over-healthcare-deputy-health-minister-explains/ar-AAH6dYU?ocid=spartanntp

1. Finance Minister LIM Guan Eng said the following :

Lim’s remarks on Pharmaniaga monopoly 

cast spotlight on drug concessionaire

following review of other similar cartels 

Lim announced govt re-looking existing contract with Pharmaniaga

expressed concerns about effects of monopoly on public healthcare cost

 

Lim said monopoly costing govt more than RM1.1b yearly 

govt allocated RM193.6b between 2010 - 2018 for healthcare services

said public health system could spend more efficiently 

costs can be addressed if MoH introduces healthy competition to drugs supply

Lim called on MoH to carry reforms to reduce expenditure

and delivery of more efficient healthcare services

2.  Deputy Health Minister Dr Lee Boon Chye said something else:

Pharmaniaga only responsible for logistics of supplying drugs to govt

rather than the supply itself.

Dr Lee explained Pharmaniaga distributes medicine 

in Approved Products Purchase List (APPL)

purchase of drugs under MoH rather than Pharmaniaga 

Pharmaniaga concession for distribution of APPL drugs to MoH facilities

Under agreement, Pharmaniaga provides logistics for APPL drugs only

includes collection, storage, distribution based on standard criteria, KPI 

and earns a fixed percentage mark-up over the purchase prices

APPL drugs (RM1.1b in 2017, RM1.2b in 2018) purchased via tender board 

headed by MoH and not Pharmaniaga,” he stressed

Dr Lee clarified Pharmaniaga not sole logistic solution for drugs for MoH 

there are other established companies providing similar services

He added RM1.1b figure is not amount spent on Pharmaniaga each year

but for total purchase of the APPL drugs.

The logistics cost and profit to Pharmaniaga is fraction of that amount” he added

Dr Lee explained APPL drugs are purchased through tender every three years 

tender board headed by MoH selects suppliers for APPL 

Pharmaniaga handles logistics of APPL drugs from suppliers 

to ensure timely delivery of drugs to all clinics, hospitals under MoH

Dr Lee points out Pharmaniaga's APPL drugs only 1/3 of RM1.1 billion purchase

other 2/3 are drugs not in APPL, bought by central contracts or quotations.

These drugs distributed by logistics service providers appointed by drug suppliers

Pharmaniaga supplies some APPL drugs but via tender, not direct to MoH 

The supplier is decided by tender board, he explained

previously Pharmaniaga said 33% of ministry’s supplies come from Pharmaniaga

(OSTB : Huh ?? So does this mean Dr Lee the Dep Minister is also bullshitting?)

 

agreed with Guan Eng's suggestions to have healthy competition in drug supply

strive to encourage competition to ensure quality and value for money

contract with Pharmaniaga rests with Cabinet

Health Minister YB Donno could not respond in time 

Pharmaniaga has not responded for comments 

OSTB :  To the Minister Dr Dzul, the Deputu Minister Dr Lee etc 

Even if Pharmaniaga supplies 100% of the MOH's drug purchases it is ok. 

But it must be on fully transparent, open tender basis.  

NO MORE 25 YEAR CONCESSIONS. 

NO MORE DIRECT NEGOTIATION BASIS. 

But here is my suggestion.  

RM3.3 billion is a lot of money. 

You can catch many birds with this amount of money.

With this amount of money you can even minum air sambil berselam.

The MoH should spread this money around. 

Do not concentrate so much money (even through open tender) with just one company or just a few big companies.

Spread the contracts around. Encourage more drug suppliers / pharmacies to become suppliers to the MoH. 

Make the process super easy, transparent and make it online. 

Let the most efficient, highest quality and affordable cost suppliers get the contracts. 

Remember you are playing with taxpayers money.

Bukan duit bapak awak.

Then the cost of providing health care services to the taxpayers will be more just.

Then for the same amount of budget (RM3.3 billion etc) you will be able to provide MORE health services, better quality drugs, better quality equipment etc.