eHealth Procurement: eHealth for Sustainable Healthcare Delivery

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eHealth Procurement: eHealth for Sustainable Healthcare Delivery. Ruscitti G. eHealth week 2010 (Barcelona: CCIB Convention Centre; 2010)

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eHealth Procurement: eHealth for Sustainable Healthcare Delivery

  1. 1. eHealth for Sustainable Healthcare Delivery eHealth Procurement Parallel Session PS 31 Thursday 18 March, 2010, 9:30 – 10:45
  2. 2. Giancarlo Ruscitti MD Secretary General for Health & Social Services Veneto Region
  3. 3. Background • The process of innovation of the Italian Public Administration system and the need for cost containment are key to aggregated purchasing in the health care system at the central level (for Veneto, at the regional level); • 2 pre-requisites are: achieving high quality standards of technical characteristics of the goods, and a market policy for goods purchasing; • The centralized purchaser at the regional level can be more cost-effective in a competitive health market
  4. 4. The Veneto Region health care system: Health Care Providers and Professionals • 21 Local Health Authorities • 2 Hospital Trusts PUBLIC ACCREDITED INSTITUTIONS 64 •1 Veneto Oncology hospital IRCSS (SPECIALIST RESEARCH 1 INSTITUTES) Public health authority (Az. Osp.) 2 Hospital in the Provincial capital 6 Network hospital / strong integration 33 Integrating hospital of the network 8 Polyfunctional health centres 10 Management experimentation 4 PRIVATE ACCREDITED INSTITUTES 14 Care homes/ hospital 19 Classified hospital 4 • 41.806 Medical & Nursing staff IRCSS (SPECIALIST RESEARCH INSTITUTES) 1 • 11.702 Laboratory Technician • 6.704 Administrative staff • 117 Other Professionals 4 (* Veneto Regional Statistics Office data, 2009)
  5. 5. Veneto Region: Health expenditure according to expense item (2009) FINANCIAL BURDENS Total.Budget 0% 9.1 Billion Euro a year AMORTIZATIONS AND OTHER COSTS DEVALUATIONS HC GOODS EXTRAORD.BURDENS 3% 9% 2% 0% NON HC RELATED GOODS 1% REGIONAL HC SERVICES 12% PERSONNEL COSTS EXTRA REGIONAL HC 32% SERVICES 2% PURCHASES OF NON HC RELATED SERVICES PRIVATE SECTOR 7% SERVICES 31% PUBLIC SECTOR SERVICES 1%
  6. 6. From a traditional procurement strategy in Veneto in each of the 21 LHAs… • Innovation in P.A. sets out to simplify and modernize purchasing processes; • Centralized Purchasing encourages the use of ICT which establishes a common language of codes and standards among purchasing platforms The “old” way
  7. 7. The Veneto Region is divided into 23 Purchasing Offices dedicated to Health Care & Social Affairs
  8. 8. …to an innovative purchasing strategy for the Veneto  A networked system of e-Procurement at the Regional level • minimize costs and maximize outcomes among LHAs; Good Networking • spread examples of best practice and competence among central and regional Health Authorities; • bring about economic savings, organizational benefits, and increase competition and transparency for suppliers. The new way
  9. 9. Centralized Purchasing at the Regional Level • The aggregation of demand leads to a potential increase in the negotiating power between public purchasing departments and suppliers; • Centralized Purchasing substitutes a host of often uncoordinated, decentralized administrations; • The potential benefit is an improvement in the price-quality relationship through a higher level of competition among suppliers.
  10. 10. e-Procurement in the 5 new Areas From 23 to 5 Centralized Purchasing Centre 5 Areas responsible for: • Purchasing procedures • Contracting for the Provinces • Accounting • Goods Storage The Veneto Health System • Distribution of goods across the 7 is divided into Provinces 21 Local Health Authorities • Payments to suppliers and 2 Teaching hospitals
  11. 11. The Veneto Experience in Centralized e-Procurement • 50 calls for tenders between 2007 – 2009 • Items (Centralized PC = Venice): • Pharmaceuticals • Vaccines • medical devices • 350M euro (Cost reduction of 26% achieved by the Centralized Purchasing Centre on the original starting price of €478M)
  12. 12. The new strategy  Purchasing at the Regional level eg. pharmaceuticals, vaccines, syringes, disposables, gloves, disinfectants, etc  Purchasing at the Area level i.e. specific equipment serving hospitals in each of the  5 Areas  Purchasing at the single LHA level i.e. all purchases that are not covered by the previous levels (because not considered cost-effective)
  13. 13. Purchasing using the procurement platform at the Regional Level in the Year 2009 • Pharmaceuticals to the value of 230 M euro • Drips to the value of 16 M euro • Surgical needles and syringes to the value of 9 M euro
  14. 14. Purchasing using the procurement platform at the Regional Level in the Year 2010 • Generic Drugs • Drips and Syringes • Vaccines • Devices for urinary incontinence • Estimated Value: 200 M euro
  15. 15. Conclusions  Centralized Purchasing at the Regional level has proven to be effective for making consistent economic savings;  A reduction in purchasing tenders has been beneficial for the organization of the Health Care System administration;  The positive results of greater competition and transparency has made it possible to convince local health administrators of the importance of centralizing purchasing and eProcurement
  16. 16. Thanking you for your kind attention! Dr. Giancarlo Ruscitti Regional Secretary for Health & Social Services Department of Health & Social Services Veneto Region, Venice ITALY giancarlo.ruscitti@regione.veneto.it

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