Devolution versus centralization of various logistic functions of Ethiopian pharmaceutical supply Agency; Qualitative study

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Date

2020-06

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Addis Abeba University

Abstract

Background: The logistic system in most developing countries including Ethiopia is centralized where the central government has excessive responsibility over various logistic functions such as planning/budgeting, forecasting, procurement, warehousing and distribution of essential medicines and medical supplies. However, these countries are suffering from poor stock availability of essential medicines at service delivery point, shortage of storage space and high work load in their central warehouses. Objective: The aim of the study is to explore perception of pharmaceutical supply chain professionals on devolution versus centralization of various logistic functions of Ethiopian Pharmaceutical Supply Agency (EPSA). Method: Qualitative study design was employed. Two cluster offices of EPSA such as Adama and Northern cluster offices including the head office along with their respective regional health bureaus and Ministry of health were purposively selected. Accordingly key informants who have high expertise on pharmaceutical logistic system were selected from designated study sites. The key informant interview was conducted using tape recorder by federal working language (Amharic). Finally, the data was analyzed manually using thematic analysis. Result: Ethiopian public pharmaceutical supply system has raised lots of complaints particularly over revolving drug fund (RDF) supply. Availability of RDF drugs was highly affected by centralization of the pharmaceutical supply system. Budgeting, direct receiving and warehousing, inventory control system were among logistic functions which were chosen to have low degree of centralization, while procurement was preferred to have high degree of centralization particularly for small and expensive items. Conclusion and recommendation: Serving pharmaceutical demand of over hundred million populations through the current system particularly for RDF products was perceived as difficult. Hence, either empowering cluster offices to exercise within central guidance of head office or devolution of central EPSA to autonomous regional offices was demanded.

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Keywords

Devolution, Decentralization, Pharmaceutical supply system.

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