Contracts and Procurement

Executive Summary of Factors Affecting the Procurement of Pharmaceutical Drugs

The report depicts about the case study of new Royal Adelaide Hospital project which is being assessed in depth in relation to the procurements and contractual concerns existing in the project. The hospital is considered to be the one of the largest and newest located in Australia. The hospital is opening its new branch which situated in the Adelaide city located in the South Australia. In the initial segment of the report a short description of the project is introduced with its elements of procurements and tender evaluations that requires to be functional to a massive project like new Royal Adelaide Hospital. These are the following methods that make sure that the procurement method is transparent and it is negligible biasness in respect of any specific contractor. In the next segment, the report states about the complications and concerns that would be faced are introduced. Subsequently, the project like nRAH which is a large scale project it would cause the complexities during the accomplishment of the project. Henceforth, the leadership and organizational are discussed to comprehend further project complications. In the final segment of the report, the risk factors throughout the project is recognized. It also states the best possible method to overcome the risk factors and increment the efficiency of the project. At last, the suggestions/ recommendations are given for the alteration that requires to occur in the procurement method to eliminate the hurdles that occurs in the project.


Procurement and Tender Evaluation

Project complexity

Organizational aspects and leadership impacts

Project key factors and their mitigation

Roles and responsibility of project resources



Introduction to Factors Affecting the Procurement of Pharmaceutical Drugs

The project management is determined to be the one of the main element and the motive of the project manager where it is seen that the project manager requires to determine and recognize the diverse elements though which they would be enlarging the manufacture. The contract management is determined to be the one of the most vital element that the manager of the corporation should determine so that they are able to enlarge their performance and accomplish the aim which assist them to achieve or get the contracts in the accurate manner. The procurement management is determined to be one of the most vital method that are used by the management of the corporation so that they can achieve and handle the effective and operative delivery of the project within the organization (Barocco et al. 2019).

In this it is seen that the management of the corporation requires to make the contracts with the diverse consumers or the raw materials providers. In this the planning comprises contract planning as one of it methods. In the contract planning, it is done in the way that the hospital managers of the contract set out the diverse project work by which they are capable to achieve the market and accomplish the aims of managing the report in the best accurate means. The contract planning comprises of the recognition of the diverse project works that narrate to the project by which the corporation is capable to enlarge its performance by the most accurate ways (Lee, Williams & Sheikh, 2016).

The project new Royal Adelaide Hospital is determined to be the one of the largest and newest building project situated in Australia. The purpose of the project is to introduce health care with all the modern facilities with the non- medical amenities that are not given by any other health care. The project will apply Public Private Partnership arrangement which would help the hospital to maintain its amenities. The functioning of the PPP is done in various ways i.e. they operate through commercial acceptance in which the state can own the hospital’s new amenities. Secondly, through the SAHP in which the hospital will provide assistance to non- medical amenities to the other health care amenities (Muhia, Waithera & Songole, 2017). Thirdly, by representing through SAHP the needs specifically in accordance to the hospital’s circumstances. Fourthly, the state is held liable in order to maintain the amenities for the hospitals.

After perceiving the structure of the hospital, the subsequent features were recognized:

  • The hospital provides 700 multi day beds with 100 same day beds which sum into 800 beds in total.
  • Numerous kinds of devices were established.
  • High technology has been used in the hospital such as automated guided vehicles.
  • In order to maintain the standard of single patient room, single suits are provided (Bartels, 2016).

Procurement and Tender Evaluation

As per the procurements and contract theory, there are six elements of the procurement management that comprises contact closure requirements, procurement process flowchart, contract management responsibilities, proposal or bid review, purchasing authority, request approval, making a request and development of needs such as technical, quality, time, and constraints which are determined to be the vital procurement elements.

Tender evaluation that has been used in this case study are:

  • Transparency

As per the principle, the transcript records must be written in the normal form of all the exercises of the evaluation panel. In this, every decision taken by the panel must be kept in a transcript manner with the validation of the pronouncement. This will assist in avoiding any biased conduct (Ghasemi, Nejad & Bagzibagli, 2017).

  • Equal treatment

In this, each and every tender should be given equal importance if it has to be submitted in the proposed deadline. Furthermore, it is also vital that the assessment of the tender should be done without any discriminatory behavior for the equal needs, circumstances and the terms and conditions as it is set in the document of the tender and by the implementing the same pre- announced award criterion.

  • Confidentiality

Assessment of the tender must be done under the surveillance of camera and it must be done in confidentiality. Furthermore, the tender should be placed in the secured place and should be under the contracting authority throughout the course of assessment. This assist in avoiding data leak. In accumulation, the assessment process and award commendations data must not be passed by any individual who is not official till the outcome is conversed to the auction-goers (Agambire & Adusei, 2019).

Project Complexity

In this case study there are various complications and perils recognized. In spite of the SA health and the governances committees were liable for observing the project. Some of the risks and complications are as follows:

  • The inauguration of the hospital got delayed due to the review influence of the opening and assessment of the risk.
  • Due to the various concerns in the formation of the operation, they have established delivery plans for execution and effective planning (Philly, Were & Nkirina, 2017).
  • Concerns confronted in establishing the model of care. In order to achieve the target to alter health care in to the commerce, it has confronted various concerns in incrementing their skills of the employees for the project.
  • In order to discourse specific concerns regarding the project, there is requirement of an independent advisors. They confronted certain concerns in it too (Lorente, Antonanzas & Rodriguez-Ibeas, 2019).
  • Concerns in separating streams accurately as the project is determined to be the one of the biggest structure of health care which will provide numerous streams and programs. The complexities occurred in the interdependencies, reliance and liabilities.

Organizational Aspects and Leadership Impacts

The Royal Adelaide Hospital project is located on the northwest corner of the Adelaide city in South Australia. It is one of the biggest hospital projects in the nation. The project is capable to swap the current Royal Adelaide Hospital as it will give more advance health care amenities. Furthermore, the project is made to entice more number of patients which would increment the intake capacity of the Royal Adelaide Hospital. They had given vital segments for the numerous branches which comprises of amenities for vehicle parking, public entrance, patients’ bedroom and emergency segment. They had intended and made their new hospital with the joint venture of Hansen Yuncken and Leighton Contractor. The project site is located near the Adelaide Railway station, in the hectare location of the city’s West end. Adelaide city is covered by the river in the north, North Terrace to the south and Morphett Street Bridge to the east (Jones, 2018).

The new project of the hospital is one of the most multifaceted and biggest health care projects in Australia which is taken on by the Stat. SA health is implementing various government needs to make sure the profits to the South Australia health system by administering the project. Though, the project has undergone with various governance alternations and arrangement variations.

Project Key Factors and Their Mitigation

In the new hospital, a procurement concern has been recognized and it is vital to diminish this concern so that the exercises and functions should be carried out efficaciously. Reduction of the risk is vital for the new hospital as the risk of fraud is very noteworthy. Due to the risk in public security, it may result in hampering the status of the hospital. Furthermore, the lack of inefficient health care devices as well as in medications would outcomes in conveying of incorrect care. Also, concerns in producing which involves producing dimensions, lack of raw materials and etc., have outcome in severe complexities within the hospital (Olofsson et al., 2019).

Notwithstanding that, a deficiency of medications was the aftereffect of health crises activated in South Australia. It was discovered that in enormous medical clinics, the vast majority of the staff are insufficient trained as well as to deal with activity and exercises inside the hospitals. Hospitals are deprived of information security, which has become an issue of patients as their confidentially is uncovered openly. It is significant for emergency clinics to appropriately keep up their patient's data alongside their security (Burns & Briggs, 2020). The hospitals activity spending plan was influenced by 40 per cent because of health care procurement cost. Besides this, because of the substitution of offices in falling delayed, the routine maintenance has additionally not been finished. Also, it is a cerebral pain for the South Australian Government as the clinic building is sufficiently costly to deal with.

By recognizing the risk of hazard associated with the new undertaking of Royal Adelaide Hospital can relief of that hazard be made conceivable. So as to counter the ensued impedances rapidly, there is a requirement for a sturdy relationship with providers. Also, authorities need to design techniques for the hazard management. Consuming the distributor hazard will help in keeping away from the provider driven hazard. Aside from this, there exist various potential dangers that have hit the state of the medical clinic land it is essential to recognize them with the goal that the whole gracefully chain can be improved. It is seen that the new Royal Adelaide Hospital venture has a capacity to supplant the current emergency clinic, however it is additionally evident that few dangers will emerge during the task (Çalıyurt, 2020).

Roles and Responsibility of Project Resources

In the association, there are three distinct advantages which assume their own job and obligations. For an association, it is critical to have these vital resources. The assets as distinguished are as per the following.

Human resources

The human asset director has a key job to enroll and deal with the workers for the advantages of the association. In addition, they are liable for giving preparing to the staff with the goal that they can get ready to offer better types of assistance to the patients. As this emergency clinic has less gifted staffs that is the reason they can't give a high caliber of care to the patient. The human asset will assist the association with recruiting the most ideal staff for the medical clinic (Nolden & Sorrell, 2016).

Financial and physical resources

The medical clinic is additionally confronting issues in its monetary asset as the emergency clinic needs more cash or reserve to yet fundamental gear. It is a significant asset as it is basic to satisfying the necessities and prerequisites of this enormous emergency clinic with the goal that it gets fit for giving great consideration to patients. The clinic has fewer staff because of which the patients would experience issues in the emergency clinic as it can't give clean beds and hardware (Barasa et al. 2017).

Recommended changes to procurement briefs

It has been discovered that, ineffectual asset the executives and allotment is bringing about the deferral of opening of the clinic. The issues which have been referenced before delineate that the new venture of Royal Adelaide Hospital ought to be completed in a viable manner with the goal that the medical clinic can hold its notoriety and name. It could be just conceivable when the new task can keep up successful assets significant for the emergency clinic. In addition, the task ought to be done so that it can ensure that the Royal Adelaide Hospital obtainment directors assigned their money related assets, physical asset, and human asset in the most ideal route conceivable in their separate fields. It will assist the association with carrying out its activity in a superior manner so it can pick up the trust of the patient. Regal Adelaide Hospital should utilize Public-Private Partnership so as to alleviate such issues looked by obtainment directors. It will guarantee the correct gracefully of key basic vital for medicinal services, which will additionally help in conveying great treatment to the required patient (Mackey & Cuomo, 2020).

The obtainment administrator, just as a venture supervisor, should actualize methodologies in the emergency clinic to guarantee powerful usage of acquirement approaches with the goal that they can accomplish the objectives and destinations of the medical clinic. Notwithstanding that, it is likewise significant that the venture and acquisition supervisor guarantee that the emergency clinic has enough budgetary assets, which can help them in buying required things for the medical clinic, for example, medications, clinical gear, clinical hardware and some more. Other than this, assembling a solid relationship with producers and providers is likewise significant. It will help in finding out the acquisition procedure adequately.

Conclusion on Factors Affecting the Procurement of Pharmaceutical Drugs

Aside from this, supervisors can gather assets from different fields for the emergency clinic so as to fill holes and produce capital for the new undertaking. For the new Royal Adelaide Hospital, the buy subtleties of the requests and expectations ought to be concluded by the acquisition chief alongside analyzing the current agreements cautiously. It is imperative to track and report the key budgetary grids to guarantee fruitful expectations with the goal that the spending plan can be appropriately kept up. It will assist the association with reducing its costs bringing about better administration and upgraded development. Risk management ought to be executed to alleviate the up and coming danger by investigating the information and negative occurrence that may happen in the emergency clinic. The gracefully chain the executives ought to be overseen appropriately for long haul benefit and development.

References for Factors Affecting the Procurement of Pharmaceutical Drugs

Agambire, R., & Adusei, C. (2019). Knowledge of Hospital Staff on the Procedures and Obstacles to Public Procurement in Ghana. Asian Journal of Medicine and Health, 1-11.

Barasa, E. W., Manyara, A. M., Molyneux, S., & Tsofa, B. (2017). Recentralization within decentralization: county hospital autonomy under devolution in Kenya. PloS one, 12(8), e0182440.

Barocco, G., Germano, D., Patussi, V., Cella, M., Tiziana, L., Pernarcic, A., ... & Bogoni, P. (2019). Evaluation, recommendation and implementation of the local hospital catering system. European Journal of Public Health, 29(Supplement_4), 186-275.

Barocco, G., Patussi, V., Cella, M., Germano, D., Pernarcic, A., Longo, T., ... & Calabretti, A. (2019). Integrated guide for public procurement and private contracts of collective catering system and SDGs. European Journal of Public Health, 29(Supplement_4), 186-276.

Bartels, D. (2016). Centralizing procurement of medicines to save costs for Denmark. Eurohealth, 22(2), 42-44.

Burns, L. R., & Briggs, A. D. (2020). Hospital purchasing alliances: Ten years after. Health care management review, 45(3), 186-195.

Çalıyurt, K. T. (2020). Developing Governance of Procurement Department in Hospitals. In Integrity, Transparency and Corruption in Healthcare & Research on Health, Volume I, 217-235.

Ghasemi, M., Nejad, M. G., & Bagzibagli, K. (2017). Knowledge management orientation: an innovative perspective to hospital management. Iranian journal of public health, 46(12), 1639.

Jones, P. (2018). Private finance initiative hospital architecture: towards a political economy of the Royal Liverpool University Hospital. Sociology of health & illness, 40(2), 327-339.

Lee, L., Williams, R., & Sheikh, A. (2016). How does joint procurement affect the design, customisation and usability of a hospital ePrescribing system?. Health informatics journal, 22(4), 828-838.

Lorente, R., Antonanzas, F., & Rodriguez-Ibeas, R. (2019). Implementation of risk-sharing contracts as perceived by Spanish hospital pharmacists. Health economics review, 9(1), 25.

Mackey, T. K., & Cuomo, R. E. (2020). An interdisciplinary review of digital technologies to facilitate anti-corruption, transparency and accountability in medicines procurement. Global Health Action, 13(sup1), 1695241.

Muhia, J., Waithera, L., & Songole, R. (2017). Factors affecting the procurement of pharmaceutical drugs: A case study of Narok County Referral Hospital, Kenya. Med Clin Rev, 3(4), 20.

Nolden, C., & Sorrell, S. (2016). The UK market for energy service contracts in 2014–2015. Energy efficiency, 9(6), 1405-1420.

Olofsson, P. T., Aspelin, P., Bohlin, J., & Blomqvist, L. (2019). The impact of contracts on outsourcing computed tomography examinations from a Swedish public university hospital to a private radiology unit. Radiography, 25(2), 148-154.

Philly, R. K., Were, S., & Nkirina, S. P. (2017). Effects of Conflict Of Interest on Procurement Performance in Referral Hospitals in Kenya: A Case of Kenyatta National Hospital (KNH) Nairobi, Kenya. International Journal of Supply Chain Management, 2(2), 22-41.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

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