DOH, PhilHealth, DTI sign JAO on pricing negotiations for single-sourced health commodities

By DOH

MANILA, Feb. 10 — The Department of Health (DOH) today reported the recent signing of the Joint Administrative Order (JAO) No. 2021-0001 between the DOH, Philippine Health Insurance Corporation (PhilHealth), and the Department of Trade and Industry (DTI) which constitutes the Price Negotiation Board and provides Implementing Guidelines on Price Negotiation for Innovative, Proprietary, Patented and Single-sourced Health Commodities.

The said Joint Administrative Order, which is a collaboration between the DOH, PhilHealth, and the DTI, is created by virtue of the implementation of the Universal Health Care (UHC) Act where Section 28 of the law states that an independent Price Negotiation Board should be created to centrally negotiate prices on behalf of the government. With the said JAO, the Price Negotiation Board is created to improve efficiency in government spending through centralized negotiation and likewise to guarantee access to affordable and quality medicines and health products specifically for innovative, proprietary, patented, and single-sourced health commodities.

“Due to fragmentation in the public procurement system, government health facilities oftentimes resort to small volume procurement which resulted in bid failures, weaker bargaining power and wide price variations of the same commodity. This order will address these issues and shall cover all health care providers under the DOH, including its facilities nationwide,” Health Secretary Francisco T. Duque III said.

The DOH further reported that the government’s spending on pharmaceuticals, health devices, and other health-related commodities are continuously rising along with the rapid changes in the health needs of the Filipinos, especially when there are unexpected public health crises such as the COVID-19 pandemic.

“This global emergency needs a quick response especially in the health sector since it poses challenges on the access to medicines, medical supplies, and vaccines. The signing of this JAO is a significant step towards addressing these challenges. Rest assured that the government will continue to implement interventions through adoption of efficient health policies and mechanisms,” Sec. Duque assured. (DOH)