If governments of LMICs reformed their medicines procurement practices, how much money would they be able to save? And how much further towards universal health coverage would these savings enable them to go?
CGD Policy Blogs
COVID-19 Surfaces New Directions for Old Challenges: Three Lasting Ways to Improve Global Health Procurement
Effective and efficient procurement of health products—medicines, diagnostics, and devices—is a critical function of all strong health systems. The pandemic has exacerbated long-standing challenges—as highlighted by a recent CGD Working Group—in the purchasing of both COVID-related emergency supplies and other essential health products.
Effective procurement of health products—medicines, diagnostics, and devices—is a foundational function for any health system and essential for progress toward the health-related Sustainable Development Goals.
To achieve universal health coverage and provide their citizens with access to quality and affordable medicines, countries will need to buy these lifesaving products efficiently and effectively.
What can we say about the relative size and composition of health commodity markets across different countries? We took a stab at piecing together publicly available data sources to find an initial answer for low- and middle-income countries as part of the background work to inform the CGD Working Group on the Future of Global Health Procurement.
Health products—including drugs, devices, diagnostics, and vector control tools—are essential for meeting the healthcare needs of any population. Right now, many low- and lower-middle-income countries rely on donor-managed mechanisms to procure a large share of these health commodities. But this status quo won’t stay static for long, and the global health community must prepare for sweeping changes in global health and procurement over the next 10–20 years. Here’s some of what we see happening now and on the immediate horizon.