Impact of the Implementation of the Public Procurement and Procurement Administration Act B.E. 2560 on Drug Procurement: Case Study of a Tertiary Hospital

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Wasamon Kwanprom
Asst. Prof.

Abstract

Objective: To determine the impact of the Public Procurement and Procurement Administration Act 2017 (PPPAA) on drug procurement in a regional hospital. Method: This research was quasi-experimental study using segmented regression to assess the impact of the PPPAA on cost of drug purchase per month, average cost of drug purchase per patient per month, duration of drug purchasing process and drug shortage. The study retrieved the data from the hospital service database and the program for drug and medical supply inventory control for 22 month period. The study compared the data before (October 1, 2016 - August, 2017) and after the enforcement of the PPPAA (November, 2017 - September 30, 2018). Results: Annual cost of drug purchase decreased from 473.5 million baht to 454.5 million baht after the enforcement of the PPPAA. The reduced drug price saved 76.8 million baht, but the increased volume of use led to the increased cost by 57.7 million baht. Annual purchasing cost for essential drugs increased from 328.5 million baht to 334.5 million baht after enforcing the PPPAA, while the annual purchasing cost for non-essential drugs decreased from 145 million baht to 120 million baht after the enforcement of the Act. Before enforcement of the Act, purchasing cost per month increased by 1.37 million baht per month [95% CI: -0.95 to 3.69]. After enforcement of the Act, purchasing cost per month decreased immediately by 7.27 million baht, and decreased by 1.66 million baht per month [95% CI: -4.94 to 1.62]. However, the change in level and trend of purchasing cost per month did not reach statistical significance. After enforcement of the PPPAA, time spent for each drug purchasing order was 2.19 days significantly longer and rate of drug shortage significantly increased by 20.09%. Conclusion: Enforcement of the PPPAA together with a timely mitigation measures for drug purchase by the Comptroller General's Department had a positive impact on the hospital leading to the decrease in cost of drug purchase per month and average cost of drug purchase per patient per month. The decrease resulted from the influence of the decreased drug prices. However, enforcement of the PPPAA led to the increase of time for drug purchases and a significant increase in drug shortage.

Article Details

Section
Research Articles

References

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