The Federal Government has approved a new policy known as Medipool, which may lower the costs of drugs and other medical consumables for Nigerians.
This was part of the decisions reached at the Federal Executive Council meeting chaired by President Bola Tinubu at the State House, Abuja, on Monday.
The Coordinating Minister of Health and Social Welfare, Professor Ali Pate, said Medipool is a group purchasing organisation for competitive pricing and to be a supplier of essential medicines and healthcare products across Nigeria.
According to him, Medipool was developed to consolidate the demand from basic healthcare centres and federal tertiary hospitals, enabling the government to leverage bulk purchasing power to lower medical costs.
“Today, council approved Medipool; it’s a group purchasing organisation for competitive pricing and to be supplier of essential medicines and healthcare products across Nigeria, through the Federal Government’s intervention, the basic health care provision fund, but also eventually outside that, through federal tertiary hospitals, so that as a buyer, we can negotiate lower prices.
“So, it’s using the monopsony power of the government as a large buyer of those commodities, negotiate lower prices and then channel those commodities,” he said.
Speaking further, the minister explained, “And the scope includes, but it’s not limited to procurement planning, distribution monitoring, supply chain, logistics management, quality assurance, regulatory compliance, as well as ensuring that local manufacturers are supported, and import substitution and the financial management and payment systems, as well as capacity building and training and contingency planning to ensure steady availability of essential drugs that are the quality that Nigerians can benefit and at a lower cost through, a public private partnership.”
He noted that the Medipool model was benchmarked against similar initiatives in countries such as Kenya, South Africa, Singapore, and Saudi Arabia.
