After testing its model of centralised procurement and distribution of drugs free of cost to the weaker sections of the society at public health institutions through the Central Medical Stores Organisation (CMSO) over the past decade, Gujarat is now ready to take a step ahead.
The Gujarat health and family welfare department has mooted a proposal to the state government to grant an autonomous status to the CMSO, making it an independent body in the lines of Tamil Nadu Medical Services Corporation (TNMSC).
Confirming the development, a senior health department official said that the move is expected to make the process of procurement of drugs and distribution speedier and more efficient. Also, more services can come under its purview, like procurement and installation of medical equipment in state run institutions etc.
Currently, the CMSO has a list of 100 essential drugs that also include life saving drugs. The agency procures drugs through an open tender process from both public and private sector pharmaceutical players, and distributes them to state run hospitals.
With the proposed autonomous status, the CMSO is likely to expand its list of essential drugs. The aim is to cut down the long bureaucratic and administrative processes. The CMSO now operates with funds solely from the state exchequer. This year the state government has allocated funds worth Rs 78 crore to the agency for procurement of drugs. The source said that recently health department officials had visited Tamil Nadu to study the model of TNMSC, and thereafter the proposal has been mooted to the state government. The TNMSC model is considered to be one of the most efficient systems in the country for procurement and distribution of drugs at affordable costs.
A recent Planning Commission study has pointed out that TNMSC had bought medicines at up to 1/20th of the retail price through bulk buying and made it available to people at an affordable price. Close to 100 companies supply over 450 different drugs and surgical equipment to the TNMSC for distribution. On the question of funds, the health department official said that the autonomous body could access funds both from state government and the Centre.
