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Assessment of drug bidding and the results of using bid winning drugs at 105 military hospital from 2015 to 2017

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Assessing the procurement of drugs and the results of using drugs for bidding at 105 Military Hospital from 2015 to 2017. Methods: Using retrospective study plan and bidding results for drug purchase.

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ASSESSMENT OF DRUG BIDDING AND THE RESULTS OF USING

BID-WINNING DRUGS AT 105 MILITARY HOSPITAL

FROM 2015 TO 2017

Ho Canh Hau 1 ; Nguyen Minh Chính 2 ; Hoang Hai 2 Nguyen Thi Lan Huong 1 ; Nguyen Thi Tam 1

SUMMARY

Objectives: Assessing the procurement of drugs and the results of using drugs for bidding at

105 Military Hospital from 2015 to 2017 Methods: Using retrospective study plan and bidding results for drug purchase Results: Having develop a list of hospital drugs in 2015 of 545 items, and 675 items in 2016, and 719 in 2017 Develop a list of bidding drugs: In terms of amounts, in

2015 it was 987 items/226 active ingredients, in 2016 it was 503 amounts/292 active ingredients, in 2017 it was 642 items/386 active ingredients Result of purchase: in 2015, it was

340 items, in 2016 it was 332 and in 2017 was 441 items Results used for health insurance subjects: 2015 was 356 items, 2016 was 354 items and in 2017 was 434 items Conclusion: Develop a list of hospital drugs in 2015 - 2017 from 545 to 719 Developing a list of bidding drugs: not rational for 3 years The result of buying increased from 340 to 441 items in period of

2015 - 2017

* Keywords: Drug bidding; Purchase and use of bid-winning drug; 105 Military Hospital

INTRODUCTION

Article 44 of the Law on Bidding No

43/2013/QH13 states that “Centralized

procurement is a way of organizing

tenders widely to select contractors

through concentrated procurement units

in order to reduce costs, time and

clues organize bidding, enhance the

professionalism in bidding, contribute to

increasing economic efficiency”[1] Guiding

and implementing the Bidding Law No 43

and Decree 63/2014/ND-CP [2] with Circular

No 11/2016/TT-BYT providing regulations

on bidding for drugs at health facilities and the Circular No 09/2016/TT-BYT issues 106 active ingredients required for concentrated local procurement [3], [4] According to the regulations on concentrated drug biddings, there were 59 national-level bids, 106 local-national-level concentrated biddings and 8 negotiated prices Thus, compared to 1,091 western medicines (issued under Circular No 09/2016), medical facilities organize their bidding if required

1 105 Military Hospital

2 Vietnam Military Medical University

Corresponding author: Ho Canh Hau ((dshocanhhau2019@gmail.com)

Date received: 01/10/2019

Date accepted: 27/11/2019

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From 2015 to 2017, bidding at health

facilities will follow the guidance of

Circular No 01/2012/TT-BYT [5] and

Circular No 11/2016/TT-BYT (from July

1, 2016) During this period, evaluation of

the procurement of drugs and the use of

drugs at 105 Military Hospital which

practical and urgent in conducting the

bidding for the following years at the

research unit Thus, the aims of this study

were: To assess the drug bidding and the

results of using bid-winning drugs at 105

Military Hospital from 2015 to 2017

SUBJECTS AND METHODS

1 Subjects

Legal documents, hospital drug list, drug bidding list and bid-winning drugs list

at 105 Military Hospital from 2015 to 2017

2 Methods

Using retrospective method to evaluate the drug bidding results and the drug procurement through the bidding from the list of hospital drugs, the list of bidding drugs and the list of procurement by bid at

105 Military Hospital from 2015 to 2017

RESULTS

From 2015 to 2017, 105 Military Hospital conducted extensive bidding to purchase drugs Evaluation of bidding and procurement of drugs by bid was shown below

1 Develop a list of hospital drugs

The hospital's drug list serves as a basis for developing a list of bidding and use drugs during the year From 2015 - 2017, the list of hospital drugs was shown in table 1

Year

The analysis results in table 1 showed:

- List of hospital drugs had been built

up year by year: 545 items in 2015, 675

items in 2016 and 719 items in 2017

Thus, compared with 2015, the figure

increased by 130 items in 2016 and 174

items in 2017

- The number of drugs in categories V

and E decreased, while the amount of

drugs in group N increased from 16.33%

in 2015 to 26.56% in 2017

- The list of hospital drugs and the process of increasing the amounts must

be selective, in accordance with the following requirements:

+ Ensuring consistent with disease patterns and costs of drugs used for treatment in hospitals: Focusing on health insurance subjects

+ Appropriate in terms of technical expertise: Grade 1 hospital

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+ Respond to new methods, new

techniques in treatment

+ Limit the use of some drugs of great

value or drugs with serious adverse

reactions, drugs that are in doubt about

the effectiveness of treatment

- It is necessary to cut down the drugs

in group N and strengthen the drug group

E (the essential medicine group) According

to the proposal of the project, it is necessary to reduce the group of N drugs

to below 10% in order to concentrate funding for group E

2 Developing a list of bidding drugs

* Compare the list of bidding drugs and the list of hospital drugs:

Year

- Develop a list of bidding drugs compared to the list of hospital drugs with a number

of items accounting for 181.10% in 2015; 74.52% in 2016 and 2017 was 89.29%

- The number of active ingredients accounted for 58.33 - 75.39% in 3 years This result showed that there was no link between the bidding list and the list of hospital drugs

* Analysis of the list of bidding drugs according to ABC:

Year

- To achieve about 75% of funding (group A), the number of items in 2015 accounted for 13.58%, 14.91%; 18.69% in 2016 and 2017, respectively

- To achieve about 10% of funding (group C), the number of items in 2015 accounted for 71.02%, 68.59% in 2016 and 65.26% in 2017

The above results were not reasonable, showing that the percentage of group A in the list of drugs for bidding next year was higher than the previous year, while group C gradually decreased

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* Compare the number of items in the list of budding drugs with the list of hospital drugs by VEN analysis:

The percentage of groups V, E, N in the list of bidding drugs and the list of hospital drugs from 2015 to 2017 was shown in figure 1

hospital drugs

- The percentage of groups V, E, N between bidding drugs and hospital drugs in a year was quite different: Group V in 2015 was about 3% apart, 7% in 2016 and 4% in

2017 Group N in 2015 was about 6% different, about 3% in 2016 and 2% in 2017

- In 3 years, the proportion of groups V, E, N in bidding drugs was not proportional Group V in 2015 was 22.49%, in 2016 it was 17.5% and in 2017 it was 28.35% Group

N in 2015 was 22.90%, in 2016 it was 27.04% and in 2017 it was 22.27%

3 List of purchased and used drugs

* Compare the list of bid-winning drugs with the list of purchased drugs according to ABC analysis:

ABC analysis from 2015 - 2017

Year

Bidding

Purchased

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- In order to achieve about 75% of the

cost for drugs of group A, the list of drugs

bidding for 3 years accounted for 13.58 -

18.69% of the total items, while the list of

purchased drugs according to bidding

results accounted for 12.06 - 15.42%

- In order to achieve about 10% of the

cost for drugs of group C, the bidding list

from 2015 to 2017 accounted for 65.26 -

71.02% of the items, while the list of

purchased drugs accounted for 69,39 - 73.82%

- There was no positive proportion among drug groups A, B and C between the bidding list and the procurement list from 2015 - 2017

- The use rate of high value drugs (group A) increased year by year (from

12.06% to 15.42% in 2017)

* Compare the list of bid-winning drugs with the list of purchased drugs according to VEN analysis:

to VEN analysis

Year Drug list

Bidding

Purchased

In 2015, the list of bidding drugs and

the list of procured drugs was quite similar

in all 3 groups V, E, N In 2016 and 2017,

the proportion among groups V, E, N was

different:

- In group V: The list of procured drugs

increased by around 5% compared to the

list of bidding drugs

- In group E: In 2016, the list of

purchased medicines decreased by 6%

compared to the list of bidding drugs;

by 2017, on the contrary, the list of

purchased medicines increased by about

6% compared to the list of bidding drugs

This result showed that the construction

of the bidding list of drugs was not close

to the demand for use in 2016 and 2017

* Compare the list of bid-winning drugs with the list of purchased drugs according

to ABC/VEN analysis:

Analysis of groups, of which group I was AV, AE, AN, BV and CV (the most important drug group), group II was BE,

BN and CE (important drug group) and group III was CN (less important drug group) in the ABC/VEN matrix as a percentage of the number of items shown

in table 6

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Table 6: Comparing list of bid-winning drugs and list of drugs purchased according

to ABC/VEN analysis

Group

Bidding

Purchased

- The percentage of groups I and II of

bid-winning drugs completed quite similar

In group III, the ratio fluctuated quite a lot:

in 2015, it accounted for 15.70%, in 2016

it decreased to 11.13%, in 2017 it

increased to 17.76%

- Percentage of purchased drugs in

groups over 3 years of fluctuating was not

proportional The results in group III (less

important drug group) decreased from

15.88% in 2015 to 12.02% in 2017 This

result showed that the hospital has paid

attention and cut down on less important

drugs in shopping

- Compare the percentage of bid-winning drugs with the percentage of procurement: The proportion in all three groups fluctuated slightly (the highest was

in group III, when the buying ratio was lower than bidding at about 6%)

* Results of procurement and use of drugs for medical insurance subjects:

105 Military Hospital has examination and treatment for 3 main subjects: Army - policy; health insurance and medical services Depth analysis of drug use results for health insurance subjects was shown in table 7, 8

Drugs

Items

Value

(milion)

(DPM: Domestically produced medicine; ID: Imported drugs)

The number of items of domestically procured drugs was equivalent to that of imported drugs for 3 years, but the value of imported drugs always accounted for a large proportion, about 70% in 3 years

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Table 8: Results of using brand-name drugs for medical insurance subjects

(Unit: Million VND)

Used drugs

The value of imported drugs has focused

mainly on the original brand-name drug

The used items accounted for about 10%

in 3 years, but the used value increased

from 13.33% in 2015 to 29.02% in 2017

From results of tables 7 and 8, it can

be demonstrated that:

- It is necessary to focus on managing

the amount of used drugs for the

brand-name drug group, because this is a

high-cost drug group, increasing the high-cost of

medical examination and treatment by

health insurance subjects

- Priority should be given to the

development of domestically manufactured

drugs to reduce the cost of use of drugs,

and at the same time to meet the Ministry

of Health's "Vietnamese people give priority

to using Vietnamese drugs" project [6]

CONCLUSION

- Building a list of hospital drugs: 545

items in 2015, 673 items in 2016 and 719

items in 2017 In particular, the number of

items in non-essential medicine group (N)

increased from 16.33% in 2015 to 26.56%

in 2017

- Building a list of bidding drugs: 987

items in 2015, 503 items in 2016 and 642

items in 2017 The active ingredient

accounted for 58.33 - 75.39% in 3 years

- Results of the list of drugs used:

545 items in 2015, 673 items in 2016 and

719 items in 2017 In particular, the amount

of non-essential drugs (N) increased from 16.33% in 2015 to 26.56% in 2017

- Implementing the bidding results: In

2015 and 2016, it exceeded 50% of the bidding results, and in 2017 only achieved about 50% of the bidding results

REFERENCES

1 National Assembly Bidding Law No

43/2013/QH13 Entry into force July 1, 2014

2013

2 Government Decree No 63/2014/NĐ-CP

Detailing a number of articles of the Bidding Law regarding contractor selection 2014, June 26

3 Ministry of Health Circular No

11/2016/TT-BYT Regulate the bidding for drugs at public health facilities 2016, May 11

4 Ministry of Health Circular No

09/2016/TT-BYT Promulgate the list of concentrated bidding drugs and the list of drugs subject to price negotiation 2016, May 5

5 Ministry of Health Circular No

01/2012/TTLT-BYT-BTC Guidance on bidding for purchasing drugs in health facilities 2012, January 19

6 Ministry of Health Decision No

4824/QD-BYT dated December 3, 2012 of the Minister of Health, approving the project

"Vietnamese people give priority to using Vietnamese drugs 2012

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