Financial constraints have made it increasingly difficult for developing countries to adequately finance the supply of drugs to health facilities.  The countries comprising the Organisation of Eastern Caribbean States (OECS) have recognized that by improving the use of existing resources could be achieved by efficient procurement practices.  Of the four areas of drug supply management, which include selection, procurement, distribution, and use, efficient procurement provides the greatest opportunity for cost-savings.

 

 

The OECS/Pharmaceutical Procurement Service (OECS/PPS) is a self-financing public sector monopsony or buyers’ cartel that covers its operating cost from a 15% surcharge. 

 

 

This article considers the success of the OECS/PPS, formerly the Eastern Caribbean Drug Service (ECDS), in implementing improved pharmaceutical procurement as a cost containment strategy, and outlines essential elements for successful pooled procurement for other resource-constrained countries.