Value Savings from Using the Decision Support System to Track Prices and Analyze the Government's Pharmaceutical Acquisition Capability to Negotiate Drug Prices According to Bang Lamung Hospital's Drug Procurement Plan

Abstract

Objective: To calculate monetary saving from the use of the Pharmaceutical Acquisition Capability -Decision Support System (PAC-DSS) to negotiate the price of drugs in procurement plan of Bang Lamung Hospital in fiscal year 2023. Methods: The study was a cross-sectional study using pharmaceutical procurement data of 198 drug items from the reports of procurement systems for public sector during the fiscal years 2019-2021. The study excluded the following items: 1) duplicate drug items in each fiscal year, 2) drug items that the Hospital had already procured at prices below the average and 3) drug items procured from public agencies with non-negotiable prices. Drug items in the study must be listed in the procurement plan in fiscal year 2023. Fifty-one drugs were included and analyzed the pharmaceutical acquisition capability (PAC). Subsequently, the PAC-DSS recommended their appropriate price. The Hospital used the recommended prices to negotiate with the distributors according to the 2023 budgetary plan, and then calculated the monetary savings. Results: Buyers exhibited price sensitivity with the procurement of 17 drugs at the prices below the PAC-DSS recommended prices in the fiscal year 2022. The negotiation based on the PAC-DSS recommended prices in the fiscal year 2023 led to a lower procurement cost in 18 drug items. The procurement cost according to the procurement plan in the fiscal year 2023 was 14,989,783 baht, while that from the negotiation using the PAC-DSS recommended prices was 13,270,244 baht. This led to substantial savings of 1,719,540 baht, representing 11.47% of the budget for the 18 negotiable drug items in the fiscal year 2023. Conclusion: Implementation of the PAC-DSS to support drug procurement could enhance the efficiency of drug procurement of Pharmacy Department at Bang Lamung Hospital because of its ability to recommend the reasonable reference prices useful for effective negotiation with vendors. If the system is widely implemented among public agencies, it could lead to restrict price distribution of drugs leading to budget saving in drug procurement.