1
HEALTH SERVICES DELIVERY
1.2
PROGRAMME FOR ORGANIZATIONAL DEVELOPMENT
1.2.1
Medical Supplies (Including Drugs) (As of March 2008)
A Focal Point
B Implementing Agencies
C Target Areas & Beneficiaries
Director Medical Supplies Division
Medical Supplies Division, RMSDD, Hospital Medical
Supplies Divisions
Beneficiaries are all patients and the health care workers
of the entire country
Project Summary:
Ministry of Health is committed to ensure the availability of good quality, safe and effective
essential drugs to the people. The prime objective in doing that is to make sure efficient
supply, with continuous availability of life saving, essential drugs & vaccines in all health
institutions.
This project covers supply and distribution of all essential drugs and all other medical supplies
except medical equipments to all government and semi government health institutions. Medical
Supplies Division is responsible for the supply of narcotic drugs to both public and privet
sectors as well. Main Problems which the Medical Supplies Division is facing out are,
 The incompatibility of physical drug estimates with the financial allocations.
 Increasing trend in the receipt of poor quality drugs.
 Violation of the agreed schedules by the suppliers leading to extra expenditure on local
purchases.
 Absence of a good mechanism (recall procedure) for re-imbursement of the quality
failed products.
The practice of "First in First out" principle has been hindered due to lack of a quick easy
location & identification facilities of batch numbers & expiry dates on outer packages since
very often labels contain small illegible letters & figures. As a result ledger cannot be
monitored by batch numbers and therefore accurate age analysis of stocks can not be made.
The necessary steps now have been taken to rectify this issue.
Reliable and latest information should be collected regularly on drugs & its usage, from drug
consumers and drug regulators to improve the rational use of drugs to make the project efficient
& effective.
Planning the future developments in the medical services should encompass the provision of
additional requirements of medical supplies in the annual estimates in time, to avoid delay in
supplies and problem of funding the same.
1. Justification:
The Medical supplies division (MSD) is managed directly by the Line Ministry and is
responsible to ensure timely and smooth distribution of drugs and selected medical supplies.
Although Sri Lankan health system is decentralized, the countrywide requirement of drugs
and medical supplies are purchased centrally by the MSD through the State Pharmaceutical
Corporation. Depending on the demand and estimated requirements, quarterly requirement is
distributed to 26 Regional Medical Drug Stores located in 26 health districts.
Unavailability of a complete logistical management information system at the Medical
Supplies Division has become a hindrance to ensure the discharge of its services, timely,
effectively and efficient manner. The project will enable MSD to develop a medical supplies
management information system for better productive procurement and supply system, by
promoting the rational use of drugs.
2. Important Assumptions/Risks/Conditions:
Assumptions.
 Proper and timely estimation of medical supplies by end users, in consistent
with the financial allocations for better planning and utilization of as
resources.
 Rational use of drugs will be practised by prescribers, Pharmacists & Patients.
Risk.



Impact of the ability to supply a required product in required quality, quantity
and time.
Not being able to supply according to delivery schedules.
Quality failed drugs can enhance the possibility of out of stock situation.
Conditions.

MSD should compensate for the additional expenditure incurred due to
violation of the delivery schedule by the supplier.

STG should be developed & adopted wherever possible.

Provincial authorities & line ministry should work out a common system for
procurement of equipments which requires similar consumables & disposables
for functioning of the same.
3. Project Objective:
Objective
To improve management
of
medical
supplies
distribution
through
effective
information
system & improve rational
use of drugs.
Formulation of Policies,
guidelines & plans for
drug procured by and
donated to, the Ministry of
Health
and
implementation of same.
Strengthening
drug
regulation
procedure including good
manufacturing practices
and law
enforcement
Indicators
Means of Verification
 % of essential drugs being out
 By surprised test check
of stock in a given period at any
reports.
dispensing
 By feed back
outlet(OPD-pharmacy, Ward
information received via
etc).
monthly returns.
 No of drugs/consumables being  By quality failed drug
out of stock at different level of
register.
stores at each month.
 By DTCC reports.
 Cost of local purchases of drugs
by institutions.
 No & % of the consignments of
the items failed. in quality per
annum.
 Drug- use indicators such as
mean number of drugs per
encounter,% of prescriptions
with antibiotics, % of
prescriptions with generics etc.
 The following policies have
 Approved National
been formulated within 6
Drug Policy and Policy
months after adoption of the
on Donations of Drugs
Health Master Plan and
& Bio-medical
approved by the Cabinet within
Equipment.
3 months thereafter
 Approved Implementing
1) National Drug Policy
Guidelines and Plans.
2) National Policy on Medical  Approved Provincial
Supplies Other than Drugs
Implementation Plans.
3)
National
Policy
on  Minutes of meeting of
Donations of Drugs & Medical
Medical Supplies
equipment
Coordination
 Implementing Guidelines and
Committee.
Plans within 6months from the
above policy formulations.
 Formulation of Provincial
Implementation Plans for the
above mentioned policies.
 Periodic review of the Policy,
and Implementation of the
Guidelines and Plans by
Medical Supplies Coordination
Committee.
 Number & % of law
 Enforcement reports.
enforcement action on the
reported incidents of breaking
the regulations.
 Number & % of law
through
Strengthening of drug
regulatory authority.
enforcement action successfully
completed.
 Test reports accredited by
 Reports and returns.
National Drug Quality
 Assessment reports.
Assurance Laboratory.
 Test reports obtain from reputed
independent laboratories.
Establishment of a well  Drug expiry reports and Age
 Expired drug register.
coordinated
logistical
analysis of the stock.
supply
 The value & % of the
system
and
good
expired/obsolete stock from
pharmaceutical
that of the serviceable stock.
Procurement system.
Providing
adequate  Total manpower requirement
 Monitoring Reports.
human,
financial
&
for Medical Supplies units as
physical
(space
&
a % of total approved cadre, %
transport) resources, for
of total cadres filled up and %
acquisition and better
of the number of staff trained
management of medical
from the total in attaining the
Supplies.
required norms.
 Expenditure on medical
supplies in line ministry and
decentralized nits/ institutions
as a % of total expenditure
respectively. (capital and
recurrent costs).
 Space available for medical
supplies in the stores & in the
hospitals within the system, as
a % of space required for
storing quarterly requirements
Continuous promotion of  % of randomly selected
 Prescription review.
Scientific
rational
prescriptions that comply with
 Observation.
prescribing,
good prescribing practices.
 Public perception
dispensing & use of  % of encounters with good
survey
medicines
dispensing practices from a
 DTCC reports.
continually promoted in
randomly selected patient
the public & private
population.
sectors.
 % of public with knowledge,
attitudes and practices that
reflect, rational use of
medicines.
Ensure the availability of
quality, safety
and
effective
Pharmaceuticals.