MOH News
The Council of Ministers approves medical supply company, AlMarghalani says
06 November 2007
The establishment of a national company for unified purchasing of medicines and medical necessities has been approved by the Council of Ministers during its meeting on 14/08/1428, said MOH Official Speaker Dr. Khalid Al-Marghalani.
 
He said the approval comes within an overall economic reform program carried out in the Kingdom of Saudi Arabia through a balanced application of a privatization process for the purpose of transferring the burden of the economic works carried out by the government to the private sector.
 
He said the Council of Ministers has issued its resolution No. 105, dated 02/05/1428, on the basis of a detailed study carried out by a committee formed of specialists from the Experts Commission, the Ministerial Committee for Administrative Organization, and the Council of Health Services. The decision calls for establishing a national stock company owned wholly by the government for securing, transporting, and storing medicines, medical equipment, and medical necessities for use of government sectors.
 
According to Al-Marghalani, the major goal behind the decision is to maintain coordination and integration among government sectors, a matter which necessitates unification of specifications and standards governing the use of medicines and medical equipment. The formation of the new company will assist in attaining such unification by coordinating a joint deal between specialists representing the different health sectors. Moreover, purchasing large amounts of required medicines, materials, and equipment will create financial surpluses which may be utilized in serving the different purposes relative to the health sectors. Unifying the specifications of purchased varieties will also assist in exchanging such purchased items among the different health sectors in cases of shortages or surpluses. Furthermore, the establishment of such a specialized and independent company, with its legal personality and independent financial status will help in maintaining flexibility, avoiding routines, and dedicating all efforts to basic duties. The company will work as a mediator between the health sectors and the suppliers, without indulging into competition with them. The private sector will also find it easy to deal with only one body instead of dividing its efforts between a number of sectors.
 
He said the works of the company is governed by a number of controls. For example, the company must commit to secure the needs of government health bodies in accordance with guidelines agreed upon with such bodies and unified terms and specifications formulated by them. It must also abide by the policies and laws issued by the Council of Health Services and the General Administration of Food and Drugs.
 
The company must, furthermore, store the drugs and medical necessities in special warehouses established for such purpose and deliver them to government bodies in accordance with submitted applications and prior schedules. The company may utilize some of the warehouses owned by governmental health bodies on the basis of rental agreements or any other means agreed upon by both parities. It must set the plans necessary for securing – in a permanent manner - the minimum amounts of strategic stocks for emergencies and disasters, may Allah save. In addition, the company must provide support to the research efforts in the field of drugs and medical necessities. Equivalent support must also cover health education and health awareness programs in coordination with manufacturers and suppliers.   



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