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Health sector danger
Govt's plan to close Health Corporation will lead to collapse, say pharmacistsPETRE WILLIAMS, Observer senior reporter williamsp@jamaicaobserver.com
Monday, February 11, 2008
The pharmaceutical industry is predicting a collapse in the public health system should the Government go ahead with plans to close the Health Corporation of Jamaica Limited (HCL).
The HCL, set up in 1994 as a fully owned government company, currently procures, stores and distributes pharmaceuticals and medical supplies for public hospitals and clinics. The proposal on the table, according to Observer sources, is to close the company, leaving just over 100 workers jobless, while transferring the management of drug procurement to the National Health Fund (NHF).
But one well-placed member of the Pharmaceutical Society of Jamaica has said that private distributors, who are to be relied upon to fill the gap left by the HCL, are not in a position to do so at the present time.
"Nobody knows our capabilities to supply these items because presently we don't bring them in," said the source, who spoke on condition of anonymity. "We don't have contracts with some of the companies that the drugs come from. We'd have to probably set up manufacturing facilities, bring on more staff, and bring on more vehicles because hospitals are not part of our supply chain at this particular point in time."
Health Minister Rudyard Spencer refused comment on the proposal yesterday but said he would meet with industry members this week.
"I have some things to discuss with them," he told the Observer.
President of the Pharmaceutical Society, Verna Edwards, confirmed the meeting is to take place on Wednesday. But the meeting comes only in the wake of protestations from the industry last week.
"This is something that is supposed to happen in another couple of months, it would seem, and nobody has approached us," said one member of the society.
HCL Managing Director Dr Valerie Kerr has echoed the concerns of the society. She said that the proposal could not be undertaken overnight.
"I do share their concerns because I don't know if they have looked at all the implications to the health sector," said Dr Kerr. "It is my understanding that it will still be the Ministry of Health that will be paying for the supplies that will be coming to this new entity, which is exactly what exists now."
The problem with that, she said, was that the HCL was owed several millions by the ministry.
"In the private sector they are not going to be able to amass those kinds of receivables, so we are just concerned as to how that whole funding is going to work, as my understanding is that the NHF will not be funding procurement; they will only be managing it," Kerr said.
The HCL boss said it was also unclear how the ministry would deal with emergency medical supplies, and has thrown cold water on the reported justification for the proposal.
To begin with, Dr Kerr said, the complaints from hospitals about not getting enough supplies was the result of a lack of funding, which a new entity would also have to deal with.
"The problem is that Health Corporation cannot supply more than the funds that are available, and so if the budget can only buy 80 per cent of the supplies needed, then you are going to get complaints about the other 20 per cent because the funds are not there," she said. "We have to pay our suppliers, and we can't get from our suppliers more than we are anticipating from our customers."
Dr Kerr also denied claims that the HCL duplicated the work of the NHF.
"The NHF is a health insurer. They provide reimbursement to pharmacies, similar to how you would have a Blue Cross. The Jamaica Drug for the Elderly Programme (JADEP) was taken over by the NHF and what they do is provide the pharmacies with stocks for that programme and they do it through the private sector distributors," she said. "That is where they may say there is a duplication but they are only dealing with the JADEP. We really don't do the same function, but I guess for some reason they think the NHF can do it more efficiently."
Health sector danger
Govt's plan to close Health Corporation will lead to collapse, say pharmacistsPETRE WILLIAMS, Observer senior reporter williamsp@jamaicaobserver.com
Monday, February 11, 2008
The pharmaceutical industry is predicting a collapse in the public health system should the Government go ahead with plans to close the Health Corporation of Jamaica Limited (HCL).
The HCL, set up in 1994 as a fully owned government company, currently procures, stores and distributes pharmaceuticals and medical supplies for public hospitals and clinics. The proposal on the table, according to Observer sources, is to close the company, leaving just over 100 workers jobless, while transferring the management of drug procurement to the National Health Fund (NHF).
But one well-placed member of the Pharmaceutical Society of Jamaica has said that private distributors, who are to be relied upon to fill the gap left by the HCL, are not in a position to do so at the present time.
"Nobody knows our capabilities to supply these items because presently we don't bring them in," said the source, who spoke on condition of anonymity. "We don't have contracts with some of the companies that the drugs come from. We'd have to probably set up manufacturing facilities, bring on more staff, and bring on more vehicles because hospitals are not part of our supply chain at this particular point in time."
Health Minister Rudyard Spencer refused comment on the proposal yesterday but said he would meet with industry members this week.
"I have some things to discuss with them," he told the Observer.
President of the Pharmaceutical Society, Verna Edwards, confirmed the meeting is to take place on Wednesday. But the meeting comes only in the wake of protestations from the industry last week.
"This is something that is supposed to happen in another couple of months, it would seem, and nobody has approached us," said one member of the society.
HCL Managing Director Dr Valerie Kerr has echoed the concerns of the society. She said that the proposal could not be undertaken overnight.
"I do share their concerns because I don't know if they have looked at all the implications to the health sector," said Dr Kerr. "It is my understanding that it will still be the Ministry of Health that will be paying for the supplies that will be coming to this new entity, which is exactly what exists now."
The problem with that, she said, was that the HCL was owed several millions by the ministry.
"In the private sector they are not going to be able to amass those kinds of receivables, so we are just concerned as to how that whole funding is going to work, as my understanding is that the NHF will not be funding procurement; they will only be managing it," Kerr said.
The HCL boss said it was also unclear how the ministry would deal with emergency medical supplies, and has thrown cold water on the reported justification for the proposal.
To begin with, Dr Kerr said, the complaints from hospitals about not getting enough supplies was the result of a lack of funding, which a new entity would also have to deal with.
"The problem is that Health Corporation cannot supply more than the funds that are available, and so if the budget can only buy 80 per cent of the supplies needed, then you are going to get complaints about the other 20 per cent because the funds are not there," she said. "We have to pay our suppliers, and we can't get from our suppliers more than we are anticipating from our customers."
Dr Kerr also denied claims that the HCL duplicated the work of the NHF.
"The NHF is a health insurer. They provide reimbursement to pharmacies, similar to how you would have a Blue Cross. The Jamaica Drug for the Elderly Programme (JADEP) was taken over by the NHF and what they do is provide the pharmacies with stocks for that programme and they do it through the private sector distributors," she said. "That is where they may say there is a duplication but they are only dealing with the JADEP. We really don't do the same function, but I guess for some reason they think the NHF can do it more efficiently."
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