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Kyrgyzstan will increase medication procurement expenditures

November 16, 2017

The system of efficient and transparent public procurement is the Republic is not yet established.

The foreign donor support is shrinking, thus prompting the government to spend more money for the procurement of medicines. At the same time, the system of efficient and transparent public procurements has not yet been created in the country. The cost of socially important medicines is sometimes unreasonably high.

According to the statistics of the Ministry of Health of Kyrgyzstan, about 650 new HIV cases are detected annually in the country, the incidence drug-resistant tuberculosis is increasing, and the estimated number of people with parenteral hepatitis exceeds 300,000.

Medications – and the cheaper, the better – are needed to treat these socially dangerous diseases.

Until recently, the country procured the necessary medications for the local healthcare system with the financial support of the foreign donors. However, the donors are gradually withdrawing, and the problem of centralized procurement of the necessary medicines and price regulation exacerbates.

Aybar Sultangaziev, chairman of the Public Supervisory Board of the Ministry of Health of the Kyrgyz Republic, says, “The purchase price in healthcare facilities is three or four times higher than in a nearby pharmacy. This remains a problem. We understand that we have problems stemming from the existence of monopoly suppliers of certain medicines. There are specific medications to threat conditions following organ transplantation. A single trade name of such medication is registered, and its cost in procurement is very high, twice higher than in the world”.

Lack of established pricing caused the situation when many drugs that were previously provided by foreign donors almost for free, suddenly got commercialized, and some medicines are now completely unaffordable for low-income citizens.

The price surge, among other reasons, is caused by numerous intermediaries involved in the supply and sale of medicines. In addition, the medicines procurement system is exposed to corruption risks. The proposals to create oversight boards to establish public control over it are voiced more and more frequently.

Anara Yeshkhodzhaeva, specialist of the social development department of the Kyrgyz government, comments, “These boards are necessary at least at the level of national centers for today. And these pioneer oversight boards should focus on the availability of medicines in order to ensure transparency of procurements, so that these medications are fairly distributed and can reach the patient”.

To make medicines affordable, experts propose to follow the example of Kazakhstan and procure medicines through international organizations. For example, while HIV treatment used to cost $2,000 a year, after the procurement handover to the international organizations the cost of treatment decreased by 10 times, thus, enabling to save 4 billion tenge of budget funds.

Bakhit Tchermashev, correspondent: “This week the parliament will consider the law on public procurement. The proposals on the oversight boards and the purchase of medicines through international organizations are among the suggested amendments. It is possible that the positive Kazakhstani experience will influence the decision of the deputies”.

Let’s recall that the Global Fund intends to allocate Kyrgyzstan about $ 23 million for three years. However, the Ministry of Health will no longer be authorized to manage them. This verdict was made by the GF Secretariat on the basis of the assessment.

The Global Fund’s official response emphasizes the main drawbacks that prevent the Ministry of Health from becoming the main recipient of grants: “The Ministry of Health Project Management Team needs strong leadership to address the current serious problems. Unfortunately, at present the situation is substandard. Delays in incentive payments to people living with HIV have proved that the risks of programs and service provision interruption do exist”.

“In addition, there is no proper mechanism for sub-granting NGOs and signing subcontracts with them. A standardized package of HIV prevention services for the key vulnerable groups has not yet been finalized and approved. It is recommended to amend the Law on Public Procurement to create procurement opportunities through international organizations”, the letter said.

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