A National Cancer Grid pooled procurement initiative, India
When 23 Indian cancer centres bought 40 cancer drugs together instead of separately, prices fell by a median of 82%, saving about 13 billion rupees against list prices.
Overview
Report in the Bulletin of the World Health Organization of the National Cancer Grid's pooled procurement pilot: 40 anticancer drugs, pooled demand from 23 cancer centres worth about 15.6 billion Indian rupees (197 million dollars) at maximum retail price, and a negotiated cost reduction of about 13.2 billion rupees (166.7 million dollars). Savings ranged from 23% to 99% per drug (median 82%), larger for generics than for innovator or newly patented drugs, and were achieved through group negotiation of fixed prices and uniform contracts with standardised terms.
- 40 drugs, 23 centres, pooled demand of about 15.6 billion rupees at maximum retail price.
- Cost reduction of about 13.2 billion rupees (166.7 million dollars).
- Savings per drug 23% to 99%, median 82%; larger for generics than innovator drugs.
- Mechanism: group negotiation, fixed prices, uniform contracts with standardised terms.
Buying power, not new science, is the fastest lever on cancer drug prices in a decentralised, under-funded system. The Grid's model is being extended across its 360-plus centres and offers a template for other middle-income countries and for pooled buying of newer, patented drugs.
- Savings are measured against maximum retail price, which overstates the gain versus prices large centres already negotiated.
- Innovator and patented drugs saw far smaller discounts; the model works best for generics.
- Sustaining supply quality and adherence to contracts across many hospitals is an ongoing task.
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not linked directly; found by shared links- InstitutionNational Health Authority (Ayushman Bharat PM-JAY)
Shares National Cancer Grid of India, Global oncology and access in low- and middle-income countries, Tata Memorial Centre, Prices and value.
- PersonDevi Shetty
Shares Global oncology and access in low- and middle-income countries, Prices and value, Most of the world has almost no cancer care.
- InstitutionHomi Bhabha Cancer Hospital and Mahamana Pandit Madan Mohan Malaviya Cancer Centre, Varanasi
Shares National Cancer Grid of India, Global oncology and access in low- and middle-income countries, Tata Memorial Centre, Most of the world has almost no cancer care.
- InstitutionThe new AIIMS network (PMSSY)
Shares National Cancer Grid of India, Global oncology and access in low- and middle-income countries, Most of the world has almost no cancer care.
- IdeaA joint price negotiation bloc for middle-income countries, modelled on Beneluxa
Shares Prices and value, Most of the world has almost no cancer care.
- IdeaBuy out the patent on a curative cancer drug and sell it at generic prices
Shares Prices and value, Most of the world has almost no cancer care.
- IdeaGrant extra exclusivity only in exchange for binding low prices in poorer countries
Shares Prices and value, Most of the world has almost no cancer care.
- IdeaNational hub-and-spoke cancer networks with defined referral tiers
Shares Tata Memorial Centre, Most of the world has almost no cancer care.