Transparency and accountability in public administration and service

Abstract

Research using data from ProZorro showed that there is considerable monopolization on procurement in Ukraine's health sector.

ProZorro is an online public procurement platform and a collaboration environment that ensures open access to public procurement (tenders) in Ukraine.

Findings

1. In 2018, about 1% of suppliers, whether for drugs or equipment, were awarded 50% of all contracts with healthcare departments and healthcare facilities, suggesting a considerable monopolization of this market: 1.1% of medication suppliers are represented by 17 out of 1,485 signed contracts worth UAH 1 billion. The same kind of monopolization was observed in 2017 as well.
2. 0.8% of medical equipment suppliers or 20 out of 2,580 signed contracts were worth UAH 1.6 billion, which was 50.9% of the value of all contracts signed in this group
3. In 2018, medications were purchased to cover 40 different areas in the state programme, which included nearly 500 preparations and 700 medical supplies. Notably, the funding allocated in the state budget covers only about 45% of what is needed. Certain areas of the programme are also not equally provided for. For instance, adult cancer treatment is only 30% covered, while juvenile dialysis is covered 100%.