Gov’t Awards $27 Billion in Contracts for Pharmaceuticals

The Government of Jamaica has awarded 61 contracts, valued at $27 billion, for the procurement of essential drugs under the 2023-2026 Pharmaceutical Awards Programme.

The National Health Fund (NHF) signed the contracts with the 34 local and international suppliers at the Jamaica Pegasus Hotel in New Kingston on Tuesday (August 15).

LASCO Distributors Ltd. was awarded the largest contract at $3.86 billion, followed by Cari-Med Group and Facey Commodity Ltd. with $3.69 billion and $3.52 billion, respectively.

In his remarks, Minister of Health and Wellness, Dr. the Hon. Christopher Tufton, said the investment is significant and will benefit over 700,000 Jamaicans.

The pharmaceuticals to be supplied under the contracts are those on the Ministry’s list of Vital Essential and Necessary (VEN) drugs and will be distributed to hospitals, health centres and 106 Drug Serv Pharmacies island-wide.

Dr. Tufton said suppliers have a duty to deliver drugs in a timely manner, while ensuring the integrity of the products.

Meanwhile, with the Government spending billions every year to treat non-communicable diseases (NCDs), Dr. Tufton said that Jamaica’s sick profile is growing, and something must be done to address the situation as the costs are unsustainable.

“It is a challenge and trajectory that becomes very difficult to sustain overtime without some changes…Jamaicans must appreciate that the Government is making its best effort to respond to their concerns, but they must also appreciate that they have a responsibility to help in ensuring their own personal wellness and collectively, the wellness of the society,” Dr. Tufton said.

Meanwhile, NHF Board Member, Cecile Watson, who delivered remarks on behalf of Chairman, Shane Dalling, said the Fund is a critical organisation in Jamaica’s healthcare system.

“The absence of accessible medication can cast a shadow over Jamaica’s Human Development Index, particularly the component that speaks directly to the pursuit of a prolonged and robust life. The implications of any prolonged medication shortage on our society’s overall health and well-being cannot be overstated,” she said.

She urged suppliers to enhance supply chain resilience, which will ensure a consistent and reliable flow of medications, even in times of international upheaval.

“We ask that you recognise the socio-economic impact of accessible healthcare and continue to offer favourable pricing and terms for essential medications. By doing so, we are taking strides towards reducing the burden on our healthcare system and enabling more equitable access to life-saving treatments,” she said.

The National Health Fund took over the management of the Pharmaceutical Warehouse in 2011.

NHF processes approximately three million prescriptions annually and has a 92 per cent fill rate.