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Learn how Brazil's Ministry of Health improved efficiency and cost-effectiveness in their public investment on medical-hospital equipment through the adoption of RENEM and SIGEM. This success story showcases the impact of pre-approved technical specifications, dynamic price setting, and automation in investment analysis.
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Public Investment on Medical-Hospital Equipment: Creation of National List of Equipment (RENEM) and Management System (SIGEM) Submitted by Name: Murilo Contó Affiliation: PAHO/WHO Consultant Location: Brasília, Brazil E-mail address for contact: contom@paho.org
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Country's Health Technology Program National List of Equipment (RENEM) and Management System (SIGEM) Background • To ensure the actions of the Brazilian Unified Health System (SUS) can be achieved, MoH provides investment programs for all over country institution can acquire equipment through project proposals. • Before the adoption of RENEM, the project proposals were presented with no definition about the type of equipment and its technical specification, including equipment or their features without evidences about their cost-effectiveness ratio. • The value requested to MoH by Hospitals were often very above the market medium prices. Hospitals Health Centers Institutions $$$ Project Proposal MoH Global CE / HTM Success Stories
Country's Health Technology Program What we did… • RENEM was adopted after systematic standardization of nomenclatures culminating in equipment combos distributed according to the complexity of healthcare environments, eliminating issues of requests not according to their profile service. • A technical process with minimum requirements of scientific evidence and economic evaluations was adopted for new incorporation of equipment. Global CE / HTM Success Stories
Country's Health Technology Program What we did… • A computerized system called SIGEM was developed to manage the structure of RENEM and the entire process of investment analysis. A tool that performs the historical search of the quantity and value of equipment financed to each state, city and institution, allowed the creation of ABC curves and Pareto analysis, identifying the key items of RENEM that require further attention and the types of equipment and specifications more requested around the country. • An automation function was introduced into SIGEM that provides the technical features of the equipment in multiple choices. Each technical feature has a monetary value associated that represents the impact on the final price. Thus, the system performs a dynamic price setting which automatically adjusts itself to the selected specification in over 100 types of equipment. Global CE / HTM Success Stories
Conclusions and Action Plan Outcomes • The quality of projects got a meaningful improvement, including only equipment with features previously approved • As a main result, the number of investments proposals approved in 2014 (7506) was almost four times higher than the previous year in 2013 (2234) • With the automatic price setting and limit of prices, the funds were invested with more efficiency. In 2013 were around US$ 300 million invested and in 2014 were around US$ 770 million Global CE / HTM Success Stories
Conclusions and Action Plan Outcomes • Pre-approved technical specifications for each equipment based on demand and cost-effectiveness evidences; • Direct impact about the financial funds optimization, providing the financing a bigger number of projects and more equipment, what means a bigger technological assistance coverage; and • Equipment with more safety and efficiency offered to population, what means a decrease the Total Cost of Ownership to management during all cycle of life, for don’t incorporate equipment with functions and resources without needs and with meaningful impact on acquisition and maintenance costs. Global CE / HTM Success Stories
Action Plan Action Plan • Increase the number of equipment on RENEM with a dynamic price setting to 200 equipment; • Others steps of investment project proposals automatized to get more dynamism on approbation; • Continuous updating of technical specifications and equipment prices. Global CE / HTM Success Stories