Reform Areas

Overview HANDUGAN NG ABOT-KAYA, MAHUSAY NA GAMOT ANG BAWAT PILIPINO! Where can Local Government Units buy affordable but high-quality drugs for their hospitals?   * The Presyong Tama, Gamot Pampamilya program of the DOH and the Department of Trade and Industry (DTI) makes available affordable, high-quality drugs to LGUs. * These drugs are called Parallel Drug Imports or PDIs.  PDIs are medicines manufactured in another country by the same drug company and sold at much lower prices than in our country.   * Actual example: Drug PDI price/tablet Local price/tablet Savings/tablet   Cotrimoxazole  (for pneumonia)   P 5.10   P 24.60   P 19.50 A patient receiving the full treatment for pneumonia can save as much as P273. Are PDI medicines of good quality? Yes.  Three factors guarantee the quality of PDI medicines. * First, the drugs are purchased only from the largest and most reputable distributors in the country where they are bought. * Second, only branded products manufactured by multinational drug companies are imported. * Third, the Bureau of Food and Drugs (BFAD) of the DOH performs laboratory testing on each batch of PDI drugs using standards much stricter than those used for locally made drugs. Where can LGUs buy PDI medicines? The Philippine International Trading Corporation (PITC), an attached agency of the DTI, sells PDI medicines. Aside from low price and good quality, are there other advantages to buying PDIs? * No need for bidding.  Since the PITC is a government agency, LGUs can simply enter into a negotiated contract with the PITC. * Value for money.  Because of lower prices, LGUs can maximize their drug budgets. * Reasonable payment terms.  The PITC is prepared to extend credit within a reasonable time from the date of delivery.  In addition, payment is in pesos, not dollars.   Has any LGU tried buying PDIs?   * Yes.  The Province of Capiz has already bought two shipments of PDIs.  These medicines are now available in all five hospitals of the province.  Many patients have benefited, especially those with chronic diseases who have to take medicines for life. * Hospital incomes have increased because of pharmacy sales.  And because prices are low, even poor patients can afford these medicines!  In Capiz, the provincial government has become the market leader, forcing private drugstores to reduce their prices! * The Province of Negros Oriental has also placed an order for PDIs.

Priority Documents on Drug Management Systems Procurement and Logistics Services (PLS) Drug Procurement Manual (.pdf file) An Assessment of the Drug Management Systems in the CHD for Northern Mindanao Vol. 1 CHD Office (.pdf file) An Assessment of the Drug Management Systems in the CHD for Northern Mindanao Vol. 2 Northern Mindanao Medical Center (.pdf file) Operational Plan for the Provinces of South Cotabato; Bulacan; Pangasinan; Capiz (.pdf file) LGU Guide for the Purchase of Parallel Drug Imports from the Philippine International Trading Corporation (.pdf file) A Report on the PHIC Drug Price Reference Index (.pdf file) Improving DMS in the Convergence Sites Using the MTP Methodology (.pdf file)