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The efficiency evaluation of public procurement of medical equipment

Author

Listed:
  • Beata Gavurova

    (Tomas Bata University in Zlín, Czech Republic)

  • Matus Kubak

    (Technical University of Košice, Slovakia)

Abstract

At present, the health systems of many countries face complex challenges even if their priority objectives remain the same - to provide sustainable health systems at the current and the prognostic demographic changes and requirements in a health system. The quality and the efficiency of healthcare delivery and their mutual conformity have been brought to public attention. Similarly, the quality and the efficiency of an entire process depends on the instrumentation and its procurement that represents a significant economic and procedural issue in the healthcare systems for a long time. Many reports of the public procurement processes and research studies declare this fact. The primary aim of this study is to evaluate the public procurement efficiency in the health system by means of the valuation approach, or savings’ estimates that are achieved by the public procurement. The savings were defined as a percentage difference between the estimated and the final contract price. The secondary objective is to examine an influence of selected variables on a creation of savings in the public procurement process by means of a regression analysis. The researched variables are as follows: time, method, procurement, NUTS level of procurement, Common Procurement Vocabulary Code, number of offers. The analysis results showed interesting findings. The number of offers has a significantly positive impact on the savings. It means that if the number of offers increases by one unit, the savings will increase by 15.6%. Also, time variable (year) has a positive impact on the savings. Consequently, it may be assumed that the public procurement process is improving from a time perspective. It may be partially caused by the fact that a new public procurement legislative has been valid since 2015. The NUTS level has also an impact on the savings in relation to the public procurement. The public procurements which took place at the level of a state were more beneficial as the public procurements at the regional level. Also, the procurement method was statistically significant parameter of a regression analysis. The competition actions together with a negotiation process created higher savings in comparison to tenders. In case of the CPV codes, the most significant savings were achieved in the group of ‘various medicinal products’. The study’s results provide a valuable knowledge for the creators of policies and a realization of the national strategic plans within the health system. Also, these results support a creation of national and international benchmarks in this area and a networking of international partnerships in the area of a public procurement that focus on a development of methodologies and comparative platforms creation.

Suggested Citation

  • Beata Gavurova & Matus Kubak, 2021. "The efficiency evaluation of public procurement of medical equipment," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 193-209, March.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:3:p:193-209
    DOI: 10.9770/jesi.2021.8.3(11)
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    References listed on IDEAS

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    1. Grega Matus & Orviska Marta & Nemec Juraj & Lawson Colin, 2019. "Factors Determining the Efficiency of Slovak Public Procurement," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 12(1), pages 43-68, June.
    2. Beata Kiselova Bilekova & Beata Gavurova & Vladimír Rogalewicz, 2018. "Application of the HTA Core Model for complex evaluation of the effectiveness and quality of Radium-223 treatment in patients with metastatic castration resistant prostate cancer," Health Economics Review, Springer, vol. 8(1), pages 1-13, December.
    3. Silvia Megyesiova & Vanda Lieskovska, 2018. "Analysis of the Sustainable Development Indicators in the OECD Countries," Sustainability, MDPI, vol. 10(12), pages 1-22, December.
    4. Juraj Nemec & Matúš Grega & Mária Horehájová & Matúš Kubák, 2020. "Efficiency of Public Procurement in the Slovak Health Care [Efektívnosť verejného obstarávania v slovenskom zdravotníctve]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2020(1), pages 27-39.
    5. Paweł Prędkiewicz & Agnieszka Bem & Paulina Ucieklak-Jeż & Rafał Siedlecki, 2019. "Public or Private? Which Source of Financing Helps to Achieve Higher Health System Efficiency?," Springer Proceedings in Business and Economics, in: Krzysztof Jajuga & Hermann Locarek-Junge & Lucjan T. Orłowski & Karsten Staehr (ed.), Contemporary Trends and Challenges in Finance, pages 191-199, Springer.
    6. Coviello, Decio & Mariniello, Mario, 2014. "Publicity requirements in public procurement: Evidence from a regression discontinuity design," Journal of Public Economics, Elsevier, vol. 109(C), pages 76-100.
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    More about this item

    Keywords

    public procurement; public procurement efficiency; medical equipment; patients’ satisfaction; public procurement efficiency determinants; savings;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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