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Thursday, December 5, 2024
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Laos to Decentralize Medicine Procurement to Provinces Starting in 2025

This Week

A shortage of medicine in Laos’ state hospitals has forced patients to buy medications from outside sources. This issue was raised during the 8th ordinary session of the National Assembly on 26 November, where members discussed solutions to the problem.

Bounfeng Phoummalaysith, Minister of Public Health, acknowledged the challenge and explained that the Ministry is working to address the shortage. 

Starting in 2025, all provinces and five central hospitals will take responsibility for purchasing their own medications. Currently, the Ministry of Public Health manages procurement, but delays in the bidding process have slowed the distribution of medicine to hospitals across the country.

To address this, the Ministry has proposed shifting procurement responsibilities to the provincial level, a model successfully tested in Oudomxay Province. The Ministry has already implemented strict regulations to oversee the process. A key priority is to establish honest provincial procurement committees, ensuring that medicine prices remain reasonable and in line with established plans. Dishonest practices could negatively impact the health insurance fund.

The Minister of Public Health also addressed concerns regarding the treatment of social security members when hospitals lack medicine, forcing patients to purchase from outside sources. In the past, some patients avoided seeking reimbursements because of the time required, leading to complaints at the hospital.

To streamline the process, the Ministry issued a notification on 28 June stating, “If social security members buy medicine outside, they must submit the bill to the relevant hospital department for reimbursement on the same day, based on the price set by the hospital. This is because the hospital has daily cash flow and no longer requires long waiting periods. Price increases are strictly prohibited, as the hospital will only reimburse the price set by the hospital and will do so on the same day.”

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