Myths & FAQs on tendering process

Myths & FAQs on tendering process

Some common myths and facts about the tendering process, as presented by the CEO of PHARMAC, Sarah Fitt:

Myth

Take the lowest bid price.

Fact

Price is important, BUT there are many other factors taken into account.

Tender decisions are made without seeking clinical advice.

Sole Supply agreements will increase the risk of an out of stock situation.

Savings achieved through tender will be hard to maintain. All tender decisions require advice from PHARMAC’s clinical committee which includes practicing doctors, nurses and pharmacists.

Incentive to commit to supplying New Zealand ahead of other markets. Safeguards in place to mitigate out of stocks or potential out of stocks.

No signs of decreasing.

Competition in the market will be reduced by tendering and awarding sole supply. Increased number of suppliers.