Commodity Pricing Analysis for Rwanda Medical Supply Limited

Context

Achieving Universal Health Care (UHC) is a priority for the Government of Rwanda (GOR), with accessible and affordable medications being a critical priority. The 2020 National Pharmaceutical Product Pricing and Cost Containment Policy aims to control pharmaceutical expenditures and improve cost monitoring within the supply chain.

Established in August 2020, Rwanda Medical Supply Limited (RMS Ltd) ensures access to effective, affordable, and safe medicines and health technologies. RMS Ltd manages procurement, customs clearance, warehousing, and distribution of drugs and medical supplies for all public health facilities. Despite significant progress, RMS Ltd aims to further enhance its internal and operational efficiency by identifying cost-effective and efficacious medical technologies. GHSC-PSM project in Rwanda and Connexi were tasked with supporting RMS Ltd by conducting a commodity price analysis to understand market competitiveness and price reasonableness.

The Opportunity

To conduct a comprehensive commodity price analysis, Connexi reviewed the purchasing trends of health commodities acquired by RMS Ltd between 2021 and 2023. The analysis focused on high-volume items, including essential medicines, select pharmaceutical commodities, medical equipment, and supplies. Leveraging market intelligence and in-country price comparisons across various sectors—such as non-governmental and private organizations—Connexi meticulously collected, validated, and analyzed pricing information from diverse sources. This rigorous approach ensured the data’s accuracy and integrity, providing a robust foundation for competitive pricing analysis. Our methodology also included a thorough validation process, confirming that all suppliers adhered to WHO GMP/ISO certification standards, thus guaranteeing that the data used was both reliable and relevant.

Results

Of the recommended list of products, 16 products were analyzed with 24 different product variations. The analysis revealed that RMS Ltd was procuring certain products at competitive prices compared to external pricing; while other commodities are more competitive alternate sources.

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