Fighting corruption in the public sector

Procurement - Healthcare

 

BACKGROUND

Health represents 14% of total government spending on average in OECD countries (6% of GDP). Healthcare spending per capita has risen by over 70% in real terms in OECD countries since the early 1990s.


A significant share of health care spending is done through procurement. Improved procurement strategies and processes provide the opportunity for better health services at lower cost.


MEDICINES

Competitive tender procedures can bring down the prices of generic medecines. The price of generic medicines in Europe can vary by 300% - from 5 cents in the Netherlands up to 15 cents in France per standard unit.

According to the Mexican Institute for Competitiveness, the Mexican Institute for Social Security saved 20 million euros in procurement spending on medicines in 2011 as a result of the OECD recommendations to improve its procurement procedures.


HEALTHCARE SERVICES

Ensuring quality results when outsourcing healthcare services is a challenge for governments. Result-based criteria and performance-based payment are increasingly being e‌xplored by countries as a method to ensure high-quality delivery. The OECD supports countries in public procurement of healthcare services and provides practical recommendations on strengthening market knowledge and structuring procurement processes.

 


HEALTHCARE INFRASTRUCTURE

Building, maintaining and operating good healthcare infrastructure, whether hospital, medical centres or other health care units, is crucial to the provision of good healthcare services for citizens. OECD reviews have found that infrastructure can take up a large part of the budget of healthcare providere ( 10% of total public procurement value in IMSS, the Mexican Institute of Social Security.

Public contracts for healthcare infrastructure should be tendered and awarded competitively. The OECD Recommendation for Enhancing Integrity in Public Procurement provides guidance on procurement processes and safeguards.

 
 
 

REVIEWS IN MEXICO

The following reviews provide a comprehensive assessment of procurement strategies and processes of IMSS & ISSSTE and provide recommendations for improving their ‌procurement systems.

 

PRIVATE SECTOR EMPLOYEES

Health Procurement in Mexico Xray photo   Review of IMSS (Mexico), which provides healthcare services to private sector employees

 

PUBLIC SECTOR EMPLOYEES

Procurement - touch icon   Review of ISSSTE (Mexico), which provides healthcare services to public sector employees.

     

 

 

 

 

 

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