|
|
CHAPTER ONE: INTRODUCTION
1.1 Introduction
Access to medicines is a part of the fundamental Right to Health and its' attainment is a pre-requisite to achieve universal access to health services. Access to medicines implies access to essential medicines. Assessing the pharmaceutical situation in a country provides baseline information on whether its' population has access to essential medicines that are of good quality, are effacacious and are being used properly. Results for such assessement can be used as a guide by policy makers and managers to develop and define the necessary changes and priority areas that require support for improved health for all. Ministry of Medical Services (2003).
1.2 Background to the Study
Essential medicines are those that satisfy the priority health care needs of the population. They are selected with due regard to disease prevalence, evidence of efficacy and safety and comparative cost-effectiveness. Essential medicines are intended to be available within the context of functioning health systems at all times in adequate amounts, in the appropriate dosage forms, with assured quality and at a price the individual and the community can afford. The development, implementation and regular updating of a national pharmaceutical policy underscore Government's commitment to ensure access to medicines for its' population. Such a policy should address primary determinants in the development, production, pricing and financing of essential medicines. WHO (2002)
According to Marshall (1999) , over the last few decades , increasing globalization and supply chain complexity, have posed risks to pharmaceutical safety, ultimately impacting businesses and, most importantly, patients. Today, materials are procured from multiple countries, manufactured somewhere else, potentially packaged in yet another country and distributed and sold globally. To successfully protect against against these risks, proactive supply chain security must deliver actionable intelligence to mitigate those risks. Once implemented, this decision-based approach, utilizing information delivered in real-time, allows for efficient business practices such as ordering cost, purchasing policy, lead time and buyer-supplier relationships, that not only protects a brand but also the many partners and people connected to the brand.
1.3 Statement of the Problem
According to WHO (2008), a nationwide study of the pharmaceutical situation was undertaken in private pharmacies in Kenya. This study was conducted using standardized methodology developed by WHO to assess the pharmaceutical situation at health facility level. This was an indicator-based survey that provided systematic data on access, rational use and quality of medicines through a facility-based approach. The study, however, did not touch on key factors affecting access, rational use and quality of medicines such as ordering costs of medicines, purchasing policies of private pharmacies, lead times and buyer-supplier relationships within such pharmacies. Despite the measures put in place, the problem of effects of ordering cost, purchasing policy, lead time and buyer-supplier relationship still exists and hence, need for a focused study on these variables.
1.4 Objectives of the Study
1.4.1 General Objectives of the Study
The general objectives of the study was to investigate the factors that influence pricing of medicines in pharmacies in Nyeri County.
1.4.2 Specific Objectives of the Study
The study aimed at achieving the following specific objectives from the survey:
i. To determine the effects of ordering cost on the pricing of medicines in pharmacies in Nyeri County.
ii. To assess the contribution of purchasing policy on the pricing of medicines in pharmacies in Nyeri County.
iii. To determine the role of lead time on the pricing of medicines in pharmacies in Nyeri County.
iv. To investigate the influence of buyer-supplier relationship on the pricing of medicines in pharmacies in Nyeri County.
1.5 Research Questions
The study sought to answer the following research questions:
i. What effect does ordering cost have on the pricing of medicines in pharmacies in Nyeri County?
ii. What contribution does purchasing policy have on the pricing of medicines in pharmacies in Nyeri County?
iii. What role does lead time have on the pricing of medicines in pharmacies in Nyeri County?
iv. How does buyer-supplier relationship influence the pricing of pharmacies in Nyeri County?
1.6 Significance of the Study
The research findings are of significant importance to the reseacher because it allowed the researcher to employ all the skills and knowledge learnt throughout the procurement training course. The study also gave the researcher an opportunity to interact with the employees and key decision makers within the healthcare industry and other key stakeholders involved in the provision of medicines. Since the complete study will remain in the internet, it will be used by other researchers as reference material as well as offer guidelines.
1.7 Limitations to the Study
In the course of this study, the researcher was faced with suspicion from two pharmacies where its personnel were hesitant to fill the questionnaires, not sure of the motives behind this study. These two pharmacy staff gave no reason as to why they chose to be excluded in this study thus, no interview with these two was conducted. Other respondents were satisfied with the broad nature of the research questions in the questionnaire. The researcher further assured the respondents of confidentiality in the information they provided. The generalized conclusions are published in this website for transparency and accessability ease to all stakeholders.
1.8 Scope of the Study
The research limited itself to pharmacies within Nyeri County, more specifically Nyeri Town. The survey targeted 12 pharmacies out of a total 37 pharmacies in Nyeri Town and took six months to compile a report from April 2016 to September 2016. The survey focused on factors influencing the pricing of medicines in pharmacies in Nyeri County while sampling Nyeri Town and more importantly, on the effects of ordering cost, purchasing policy, lead time and buyer-supplier relationship on the pricing of medicines within this County.