Efficient procurement of medicinal products under the Public Procurement Act

In the current healthcare environment, procurement plays a key role in meeting the needs of healthcare facilities, particularly in the area of purchasing medicines, as healthcare facilities face pressure to optimise costs while maintaining a high level of patient care. The Office for the Protection of Competition has developed a Methodological Recommendation for the Purchase of Medicinal Products under the Public Procurement Act on this wide-ranging issue. This article focuses on the analysis of effective tools for the purchase of medicines under the Public Procurement Act No. 134/2016 (hereinafter referred to as the "PPA") and aims to provide a comprehensive overview of best practices and recommendations for improving purchasing processes in line with legal standards and patient needs.

The purchase of pharmaceuticals is a challenge for public procurers, requiring not only knowledge of the current market but also the ability to use effective tools and procedures. Specificities can be seen in the requirement to ensure the quality and safety of medicinal products, their certification, as well as specific conditions for their storage and distribution. Another important aspect is the evaluation of tenders in terms of overall value, where, in addition to price, quality, innovation and additional services related to the supply of medicines are also assessed.

Key practices that make the whole process more efficient include the use of the Dynamic Purchasing System (DNS), the implementation of mini-tenders, the use of electronic catalogues and the conclusion of contracts with a framework element.

Medicines Buying Guide

According to Section 138(1) of the Public Procurement Act, the DNS is a fully electronic, open system for public procurement, which is particularly suitable for frequent purchases of commonly available goods, such as medicinal products. The DNS allows contracting authorities to simplify and optimise the entire procurement process.

One of the main advantages of DNS is its longevity. Unlike framework agreements, where the contracting authority is limited by the duration of the contract, DNS is not limited in duration. This eliminates the need for frequent retendering, leading to greater efficiency in the selection of suppliers.

Another key feature is the openness of DNS. Suppliers are not limited by the time to apply for participation and can request inclusion at any time during its duration. This system promotes competition, improves the availability of medicines and allows procurers to respond to new treatment options and price advantages.

The flexibility of the subject matter is another important aspect that distinguishes DNS from framework agreements. Contracting authorities can specify their specific needs within individual mini-tenders, which allows for rapid adaptation to market changes and the inclusion of new medicinal products without the need to modify and intervene in the established DNS.

For effective use of the DNS, it is recommended that the qualification requirements for suppliers are minimal and reflect only the basic legislative requirements for pharmaceutical distributors, thus opening up space for the involvement of a wide range of distribution channels, including specific distributors, which increases the competitive environment.

The DNS in Section 141(3) of the ZZVZ allows exceptionally to shorten the standard deadline for submission of tenders, which may not be shorter than 10 days from the date of sending the invitation to submit tenders. This reduction is only possible with the written consent of all suppliers included in the DNS. This flexibility offers the possibility for contracting authorities to considerably streamline the procurement process by allowing them to set the deadline for submission of tenders to a minimum without an explicit minimum length. It is important to stress that such consent must be voluntary and cannot be a condition for inclusion in the DNS. These measures ensure that, despite the possible shortening of the deadline, the process remains transparent for all parties involved. In addition, suppliers are able to withdraw their consent at any time, which contributes to protecting them and maintaining a flexible but fair purchasing environment.

The introduction of the DNS using electronic catalogues represents another innovative approach to public procurement, as indicated in Section 215 of the PPA. Electronic catalogues allow contracting authorities to easily view and compare products and services from different suppliers. In the field of pharmaceuticals, electronic catalogues simplify product selection by providing up-to-date information on availability, prices and specifications. The use of these catalogues can significantly speed up the purchasing process and improve purchasing decisions based on accurate and comparable data.

Contracts with a framework element allow contracting authorities to set the terms and conditions for future contracts over a certain period. These contracts define prices, quantities, quality and other conditions in advance, and only on the basis of such contracts are individual purchase orders for supplies issued, which simplifies the process of awarding specific contracts. In the context of these contracts with a framework element, it should be noted that, unlike the DNS, any framework agreement closes the market only to its participants and is also limited to a duration of four years.

It is necessary to mention that framework agreements and DNS are two different institutes, and in the case of concluding contracts with a framework element, they will not be framework agreements within the meaning of the provisions of Sections 131-137 of the Public Procurement Act, which are not directly applicable, but the limitations specified therein must be respected to a reasonable extent.

Conclusion

Effective procurement of medicines under the HPA requires not only a thorough understanding of the legislative framework and methodologies, but also flexibility, openness to innovation and the ability to respond quickly to changing healthcare needs. DNS promotes competition, increases transparency and can lead to significant cost reductions for the procuring entity.

This article provides a basic overview for the purchase of medicinal products to help contracting authorities better navigate the complex environment of public procurement. If you are in a situation where you are looking for the most effective ways to purchase medicines in accordance with the PPA, please do not hesitate to contact us.