What Is An Advantage Of A Primary Wholesale Purchasing Agreement

This chapter provides an overview of the drug distribution chain and explains the differences between the systems of developed and developing countries. The drug wholesale system is a weak point where illegal and illegal supply chains mix. Better controls in the wholesale market could improve the security of the distribution chain. Drug tracking systems could also improve safety by preventing products that leave the legitimate supply chain from returning. These solutions can improve drug safety as long as the supply chain does not disintegrate to the point closest to the patient. Unorganized drug markets, both real and online, undermine regulatory controls over drug distribution. Rural deprivation begins with education. Pharmacy schools are located in cities and therefore attract urban students who have little interest in working in the countryside or moving there after graduation (Anderson et al., 2009). In addition, in many low- and middle-income countries, particularly in Asia, pharmacy education enables students to work in industry (Azhar et al., 2009; Mohanta et al., 2001). A critic of India`s pharmacy education system noted that “the joint practice of pharmacy does not exist in its true sense, but only the sale of medicines” (Mohanta et al., 2001, p.

810). NMPI NOTES: (1) New York voted in April 2009, April 2009, to “cease participating in the National Medicaid Pooling Initiative in order to allow the state to negotiate additional discounts directly with manufacturers ($1.8 million) and others. The budget deal allows the DOH to negotiate directly with drug manufacturers to get better discounts on prescription drugs. Prior to the implementation of this program, the ability to receive discounts was limited to drugs included in the state`s preferred drug program, which limited both the number of drugs and the amount of discount the state could receive. This new agency will leverage Medicaid`s considerable purchasing power to get lower discounts on prescription drugs that are already on the preferred drug list and expand the discount program to other drugs. When fully implemented in two years, additional savings from rebates are expected to exceed $167 million. 3. October 2011 – According to Steve Liles, Senior Director of Value-Based Purchasing at Magellan Health Services, “New York is still participating in the NMPI. The state is in the process of creating pharmacy services for about 75% of their beneficiaries in managed care organizations, but they will continue to remain members of NMPI for their remaining pay-as-you-go recipients. Unlike other NMPI countries, New York enters into contracts with a number of manufacturers (manufacturers not contractually bound by the NMPI) through an additional national discount agreement.

“There are two types of pharmaceutical wholesalers: primary wholesalers who have distribution agreements with manufacturers and buy directly from them, and secondary wholesalers who buy from other intermediaries. In some countries, including the United States, there are also large regional wholesalers (Fein, 2012; White and Bothma, 2009). . . .

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