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How the prices on medical equipment are determined in Kazakhstan?

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Actual problems of manufacturers of medical equipment were discussed at NCE "Atameken"
At the National Chamber of Entrepreneurs of Kazakhstan "Atameken" was held a meeting in order to develop a consolidated solution for improving the techniques of the expert evaluation of optimum performance and clinical and technical justification of medical equipment. It is proposed to introduce a mechanism to evaluate price offers of manufacturers, taking into account peculiarities of domestic products.
The event was held with the participation of representatives of the Ministry of Health, "SK Pharmacy"," KazMedTech "and business in a videoconference format, to which were able to connect the regions.

Head of the Department of Finance of JSC "Aktyubrentgen" Marat Sabirzhanov proposed to change the current methodology. In his opinion, it is necessary to take into account all the main items of expenditure with the division into direct production and overhead costs. Besides, he added, in the analysis of prices one should consider the level of inflation and changes in exchange rates relative to the rate of tenge.

Subordinated company to the Ministry of Health - JSC "KazMedTech" proposes to divide the content into imported component and Kazakhstani content. At the same time to apply the existing mechanism to import, and to verify the Kazakhstan content to request audit reports.
Most of Kazakhstan's producers do not agree with the procedure proposed by "KazMedTech" because not all domestic enterprises are subject to audit, in addition, this would entail additional costs for businesses.

По мнению отечественных производителей, применение данных об аудите не будет отражать действительность, поскольку в отчетах об аудите содержатся исторические данные, а цены нужно определять на будущие поставки.

The company "Kazmedpribor" proposed to simplify the procedure, which is supported by most manufacturers. The proposed concept includes a full disclosure of information on the activities of the enterprise, which can result in red tape and a lengthening of terms of consideration of these documents.

 The acting Chairman of the Control Committee of medical and pharmaceutical activities Larissa Pak agreed that it is necessary to simplify the procedure, and cited the example of the mechanism of register for drug prices.
"I suggest a simpler way. Initially, when we started to control drug prices, we took into account their historical and chronological indicators - prices over the past few years, to see how they were fixed. We also took into account the factors that influenced the pricing", - she said.

Representatives of the National Health Chamber proposed to use PPPs. It was suggested to foresee a specific price index. The authorized state body must negotiate with the entrepreneur in what cases it is possible to take a decision to increase the value (for example, because of the devaluation, the use of new technologies, etc.).

"KazMedTech" intends to carefully consider this version to see how effective it is.
Another problem that requires an immediate solution was discussed at the meeting. Upon conclusion of long-term contracts at the end of 2015, the medical equipment of domestic production passed the examination by the acting mechanism of "KazMedTech". After the devaluation the prices have not been revised. "Atameken" has repeatedly raised this issue, but it was never resolved. As a result, there is a critical situation, when from medical organization already sent orders for equipment, which is included in long-term contracts, and manufacturers can not satisfy them, because it is not profitable for them.

Following the discussion, it was decided to introduce changes in a short term in the current order to repeal the existing pricing procedures, which, in fact, can’t be applied to domestic products.
In addition, the issue of extending the list of products and localization capabilities was considered.

"Atameken" offered producers to consider the possibility of localization of production that was not previously carried on the territory of Kazakhstan. In this regard, NCE is waiting for proposals from the business, and intends to jointly consider what barriers exist in the current legislation, what are the opportunities, the state support measures available.
It was also stated at the meeting that now medical organizations upon purchase of medical equipment sets certain parameters in technical specifications, which on major part comply with manufacturers of certain imported products. Current legislation allows it to them. As a result, the interests of domestic producers are infringed.

NCE has proposed to develop a standard approach to the technical characteristics of medical equipment to provide all suppliers equal opportunity to participate in the procurement. The proposal was supported by the participants of the meeting. According to representatives of the competent authorities, the matter is under consideration, and its follow-up is planned to develop standard approaches, which will be agreed with the representatives of business and NCE.

 


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