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Procurement and Supply Management Policies

Procurement and Supply Management Policies. WHO/UNICEF Technical Briefing Seminar on Essential Medicines Policies, November 2010 Sophie Logez Pharmaceutical Management Unit. Presentation Outline. Global Fund grants: portfolio update and results

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Procurement and Supply Management Policies

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  1. Procurement and Supply Management Policies WHO/UNICEF Technical Briefing Seminar on Essential Medicines Policies, November 2010 Sophie Logez Pharmaceutical Management Unit

  2. Presentation Outline • Global Fund grants: portfolio update and results • Global Fund approach to pharmaceutical and health products management

  3. Financing 785 grants in 145 countries (Nov. 10) Status of Global Fund Grants Objective of the Global Fund “making a “sustainable and significant” contribution to the achievement of the Millennium Development Goals”

  4. Rapid scaling up of results Global Fund Top 3 result indicators (2010)

  5. Global Fund Approved Proposals By Region (Rounds 1-9) Source: Global Fund Grant Data OP/140709/2

  6. Disease Components DistributionRounds 1-9 (July 2010) Global Fund Resources by Disease Component 100% = US$ 16.4 billion Percentages of total funds approved by the Board, including Phase 2 & RCC OP/140709/3

  7. How are Grant Funds Used? Resources by Expenditure Component (July 2009) Estimates from Rounds 2-8 proposals 100% = $8.2 billion USD OP/140108/6

  8. The Global Fund Approach Pharmaceutical and Health Product Management • Principles and minimum standards, not detailed procedures “Operational principles for Good Pharmaceutical Procurement” • Build upon existing systems • Principal Recipients responsible for all PSM activities

  9. Products Pharmaceuticals Health products Health equipment Equipment Services Registration Selection Forecasting Procurement Transport Quality assurance/QC Storage Distribution Monitoring Pharmacovigilance What it can include • Activities • Procurement costs • Quality Assurance costs • Distribution costs • Training • Technical Assistance • Capacity Building

  10. Outline • Global Fund principles on PSM • QA Policy for pharmaceutical products (1 July 2009) • Price & Quality Reporting

  11. Policies and Principles • Quality-assured products • Lowest possible price • National laws and international agreements • Transparent, fair and competitive procurement Guide outlines what PRs need to do

  12. QA Policy for Pharmaceutical Products (as of 2009) • Quality Criteria • For all products • Authorization for use in the recipient countries • For ARVs, anti-TB and anti-malarial products • WHO Prequalified or authorized by a Stringent Regulatory Authority; • or • Recommended for use by an Expert Review Panel, • OnlyIf <2 WHO PQed or SRA authorized products available • Monitoring Quality • Monitoring quality of products all along the supply chain • Systematic random quality control testing • Recipients report testing results to Global Fund • Clinical Criteria • Medicines listed in WHO or national or institutional Standard Treatment Guidelines • Require applicants/ recipients to provide justification for selection of unlisted products in one of the STGs + +

  13. Distribution of Products by Quality Criteria WHO Prequalified and SRA approved products are purchased in priority, if available. Currently, 95% (in units) of ARVs purchased by PRs are WHO PQed

  14. Publication of QC Results

  15. Partnerships in Quality Assurance • Close collaboration with WHO PQ • Expert advice • QA Policy implementation: ERP management • WHO Disease Programs: HIV, Malaria, TB • Collaboration/information sharing with other donors and suppliers, such as UNICEF, UNDP • Working toward policy harmonization with partners eg. GDF • Regular communication with manufacturers: annual meeting • Monitoring QA activities and publication of results

  16. Policies Perspectives • Study on the QA status of medicines other than ARVs, anti-TB and antimalarial products • Develop QA approach for such medicines • Proposed QA Policy for Diagnostic Products • To be endorsed by the Board in December 2010

  17. Make publicly available price and quality information • Transparency • Informed procurement decisions by countries • Basis to develop demand forecasts • Monitor price and quality information • Price analysis report • Price trend, regional comparison • Purchase price report • PQR usage & data audit status • QA Compliance • Analyze procurement information for policy purposes • Health Products to be reported: • ARVs • Antimalarial medicines • Tuberculosis medicines • Bednets • Condoms • Rapid Diagnostics Kits

  18. Use of PQR in Grant Lifecycle • Budgeting & Grant negotiation • Proposal development, TRP Review, PSM Plan Review • Grant Implementation • Monitoring of compliance with QA Policy • Review by PRs of prices achieved versus peers • Grant Performance Reviews • Benchmarking of prices achieved versus peers • Review of QA issues • Identification of value for money opportunities • Transparency

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