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Improving the Methodology for Assessing the Economic Efficiency of Public E-procurement of Medicines

Author

Listed:
  • Anna I. Denisova

    (State University of Management, Moscow, Russian Federation)

  • Dzhamilya A. Sozaeva

    (State University of Management, Moscow, Russian Federation; Moscow University for Industry and Finance “Synergy”, Moscow, Russian Federation)

  • Konstantin V. Gonchar

    (Bauman Moscow State Technical University, Moscow, Russian Federation)

  • Griegory A. Aleksandrov

    (Omsk State Medical University, Omsk, Russian Federation)

Abstract

The study raises the issue of evaluating the effectiveness of public procurement, especially procurement of medicines. This topic is relevant, since a significant part of state funding is directed specifically to the healthcare system. In addition, the quality of organization of procurement activities affects the work of hospitals and polyclinics. In this regard, the improvement of the methodology for assessing the economic efficiency of public procurement, particularly procurement of medicines, is critically important. The paper presents the results of statistical analysis showing the need to develop a more comprehensive methodology that takes into account the volume of failed purchases in the context of efficiency assessment. The issue of "repeated" purchases was studied separately, since information about them would allow drawing conclusions about the existing patterns in tenders and the reasons for recognizing a purchase as failed. The methodological novelty is associated with the description of the approach to the formation of a sample for research and the algorithm for identifying "repeated" procurement procedures. All calculations are based on real data on procurement under the Federal Law No. 44-FZ for 2021–2022. The data was aggregated from the Unified Information System for Procurement. A statistical analysis of the scale of failed and repeated purchases in the context of regions, medicines and pharmacotherapeutic groups has been conducted. Based on the analysis, approximate estimates of hidden costs of the state budget related to re-organizing and re-conducting of trade procedures are given. The results of the work can be used for further scientific research in the field of public procurement efficiency, as well as to improve public policy in the field of procurement and provision of medicines.

Suggested Citation

  • Anna I. Denisova & Dzhamilya A. Sozaeva & Konstantin V. Gonchar & Griegory A. Aleksandrov, 2023. "Improving the Methodology for Assessing the Economic Efficiency of Public E-procurement of Medicines," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 63-81, August.
    • Handle: RePEc:fru:finjrn:230404:p:63-81
    DOI: 10.31107/2075-1990-2023-4-63-81
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    References listed on IDEAS

    as
    1. Olga N. Balaeva & Andrei A. Yakovlev & Yuliya D. Rodionova & Daniil M. Esaulov, 2018. "Public Procurement Transaction Costs: A Country-Level Assessment Based On Microdata," HSE Working papers WP BRP 20/PSP/2018, National Research University Higher School of Economics.
    2. S. Izmalkov & K. Sonin., 2017. "Basics of contract theory," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 1.
    3. Callejas, Jerónimo & Mohapatra, Debi Prasad, 2021. "Welfare effects of public procurement of medicines: Evidence from Ecuador," International Journal of Industrial Organization, Elsevier, vol. 75(C).
    4. David Fourie & Cornel Malan, 2020. "Public Procurement in the South African Economy: Addressing the Systemic Issues," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    5. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    state and municipal procurement; effectiveness of public procurement; procurement of medicines; repeated purchases; failed purchases; big data;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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