Quality and Cost-Effectiveness in Pharmaceutical Procurement: Strategies and a Systematic Review

Mohammed Ali Alahmar (1) , Fatimah Ali Ahmad Shabi (1) , Noura Hassan Mohammed Safi (1) , Amal Saleh Adam Faraj (1) , HAssan Shabi alagedi (1) , Masaad Awadh Almutairi (1) , Huda Omar Salhia (1) , Ebtisam Ali Aljaizani (1) , Sulaiman Qaem Alanazi (1) , Sultan Saad alshehri (1) , Ahmad Abdullah Alkaabi (2) , Houson Ali Aloudah (2) , Muneerah Suliman Al-Doukhi (3) , Ghazyah Nasser ALquraini (3) , Abdulaziz Sayer Alanazi (4)
(1) General Directorate of Medical Supplies,Ministry of Health, Saudi Arabia,
(2) General Directorate of Procurement,Ministry of Health, Saudi Arabia,
(3) General Contracts Department,Ministry of Health, Saudi Arabia,
(4) Contract Management,Ministry of Health, Saudi Arabia

Abstract

Background: Pharmaceutical procurement is a critical function of the healthcare system in ensuring public health, medicine security, and fiscal sustainability. Inefficient procurement bears the triple risk of essential medicine stockouts, infiltration of substandard drugs, and a tremendous waste of funds, making it a persistent challenge to balance quality-assured access with cost-effectiveness.


Aim: This review synthesizes and assesses the evidence from 2015 to 2024 about strategies and frameworks tested to improve the quality assurance and cost-effectiveness of public sector pharmaceutical procurement.


Methods: The following databases - PubMed, Scopus, Web of Science, and EMBASE - were systematically searched for peer-reviewed studies, with relevant keywords, between the period of 2015 and 2024. Included empirical studies, reviews, and case studies from various income settings were thematically analyzed via narrative synthesis.


Results: The evidence highlights a toolkit of interlinked strategies. On cost-effectiveness, pooled procurement mechanisms, such as national/regional tenders, attained substantial price reductions (15-40%), whereas stringent generic medicine policies formed the foundation for cost containment. For quality, a tight suppliers' pre-qualification, reliance on WHO/ Stringent Regulatory Authorities, and post-market surveillance were indispensable features. Certain integrated strategies, such as Quality-assured Framework Agreements, came out successful in accommodating both objectives. Main barriers to implementation included political interference, insufficient workforce capacity, and fragmented information systems.


Conclusions: A holistic, multi-pronged approach is needed, recognizing procurement as strategic in scope, not just an administrative function. Recommendations range from institutionalizing open, data-driven decision-making to investing in workforce capacity, designing quality-weighted tenders, and integrating digital tools. Future studies could focus on the longitudinal impact on health and specific anti-corruption frameworks.

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Authors

Mohammed Ali Alahmar
Fatimah Ali Ahmad Shabi
Noura Hassan Mohammed Safi
Amal Saleh Adam Faraj
HAssan Shabi alagedi
Masaad Awadh Almutairi
Huda Omar Salhia
Ebtisam Ali Aljaizani
Sulaiman Qaem Alanazi
Sultan Saad alshehri
Ahmad Abdullah Alkaabi
Houson Ali Aloudah
Muneerah Suliman Al-Doukhi
Ghazyah Nasser ALquraini
Abdulaziz Sayer Alanazi
Alahmar, M. A., Fatimah Ali Ahmad Shabi, Noura Hassan Mohammed Safi, Amal Saleh Adam Faraj, HAssan Shabi alagedi, Masaad Awadh Almutairi, … Abdulaziz Sayer Alanazi. (2025). Quality and Cost-Effectiveness in Pharmaceutical Procurement: Strategies and a Systematic Review. Saudi Journal of Medicine and Public Health, 2(2), 1279–1286. https://doi.org/10.64483/202522277

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