Aasandha's Bulk Medication Procurement to Save MVR 300 Million Annually

Aasandha has unveiled a new strategy to reduce medical expenses in the Maldives through bulk purchasing of high-quality European-standard medications. This initiative, in collaboration with the United Nations Development Programme (UNDP), is projected to save the country MVR 300 million annually. The initial shipment, which has already been received by the State Trading Organization (STO), includes seven top-grade medications along with other related drugs, with three additional medications expected by October. This initial batch alone is anticipated to cut costs by approximately MVR 10 million over the next year.

The medications included in this shipment are designed for various treatments, including mental health issues and antibiotics. While these medications are termed "European quality," they are sourced from manufacturers in countries like India, Greece, and the United Kingdom, ensuring they meet stringent European quality standards.

The new bulk procurement system aims to address challenges faced under previous methods where high costs were driven by private pharmacies' inability to purchase directly from manufacturers. By adopting a pooled procurement approach, the Maldives is collaborating with other nations to secure medications based on actual needs rather than historical data. This method is expected to ensure that medication supply aligns more closely with demand and reduce overall costs.

Aasandha's plan involves importing essential medications, currently numbering around 400, at European quality standards through STO. This approach is designed to make expensive medications more affordable, with an estimated annual saving target of MVR 300 million, though actual savings may vary.

Under the new system, private pharmacies will purchase these medications from STO, with retail prices regulated to include only a minimal profit margin. Any extra costs not covered by Aasandha will be the responsibility of customers. Pharmacies will be required to adhere to the set prices without inflating costs.

The Maldives Food and Drug Authority (MFDA) has approved over 1,600 types of medication for import, all of which must meet MFDA regulations and include comprehensive documentation. However, the small size of the Maldivian market often complicates obtaining this documentation. The new bulk procurement policy aims to mitigate these issues, ensuring a steady supply of high-quality medications while substantially cutting costs.