The state Health Department has decided to put up the names of drugs purchased along with the names of beneficiaries on a web-based computerised system so as to make local purchase of drugs more transparent.
The system is being developed by Uttar Pradesh Health System Strengthening Project (UPHSSP),a project funded by World Bank.
The decision is part of the new drug policy released by the state government last week. The policy has also given final shape to procurement of certain branded medicines for hospitals. This is the first time that the state government has introduced purchase of branded medicines for government hospitals apart from generic drugs.
According to the policy,the web-based system will be developed for warehouse management of drugs,purchase orders,supply,sampling and test of medicines as well as payment for supply. The daily accounts of medicines procured under local purchase will be uploaded on this web-based system. The account will include the name of the medicine,quantity,rate as well as the name of the beneficiary. Local purchase is done by government hospitals and Chief Medical Officers (CMO) in the districts for those drugs that are not available in the hospitals medicine depots.
Further,each CMO and Chief Medical Superintendent (CMS) will update the requirement and consumption of medicines on a daily basis on the web-based system. The Health Department,through UPHSSP and NRHM,will also build warehouses at district as well as divisional headquarters.
Another significant change in the drug policy is that merely 20 per cent of the total drugs will now be purchased at the central level. The remaining 80 per cent will be procured directly at the district level and the payment will also be done at the districts. Last year,the department adopted a drug policy according to which 80 per cent of the medicines were to be procurement at the central level.
As per the new policy,among the 20 per cent-purchase made at central level will be the procurement of medicines manufactured by Uttar Pradesh Drugs and Pharmaceuticals Company (UPDPL) as well as purchase of branded drugs.
The state government had already decided to purchase some emergency and life saving drugs under brand names. According to the drug policy,these branded medicines will be purchased centrally after approval from the High Power Purchase Committee. A maximum of 10 per cent of the total budget will be used for purchase of these branded medicines. The Director General Medical and Health will get the list and requirements of these branded medicines approved from the government in advance. Such branded medicines will be made available in all the hospitals of the state by the headquarters as per the necessity of these hospitals.
The state government has also decided that UPDPL will be given orders for supply of medicines depending upon its capacity and position to manufacture and supply drugs. Even for those drugs which are being supplied by UPDPL,bids will be invited in order to get emergency supply of those drugs from other firms if UPDPL is unable to supply.
As per the policy,any purchase above Rs one crore will be presented before High Power Review Committee and will be presented before the minister of Health and Family Welfare for approval. Even the medicines to be purchased under brand names will be sent to the minister for approval under recommendation of the High Power Review Committee.
Those firms which are unable to fulfil the supply order will be disqualified from bidding for three years. If there is a delay in the test of the medicine,the company will have to get batch-wise certificates by an NABL certified laboratory. Further,the medicine samples can be sent for test at local level at any given point of time. The rate contract of the medicines will be done for one year.
However,in unavoidable situations,the rate contract might be extended as per provisions by the government. The earnest money for rate contracts have been increased from Rs 25,000 to Rs 50,000 and security money has also been increased from Rs 5,000 to Rs 50,000.