Guv partners with private pharmaceutical company

NORTHERN Samar Governor Paul Daza has entered into a partnership with a private pharmaceutical company as part of his effort to improve the delivery of health services in his province.

Daza said the agreement that he signed, representing the Provincial Government, with that of the Planet Drugstore Corp. (PDC), is the first of its kind in the country.

The governor said the partnership is “somewhat a cutting-edge as it is the first Public-Private Partnership (PPP) involving the health sector.”

Based on the agreement signed by the two entities last October 10, the Provincial Government, which owned the Northern Samar Provincial Hospital located at the provincial capital of Northern Samar, would allow the PDC to run and manage the hospital’s pharmacy.

In turn, the Provincial Government would collect a monthly rental and a 5.5 percent share of the company’s gross monthly sales.

“The hospital is owned by the Provincial Government and will now act as a landlord while the PDC, the private sector proponent, will be the tenant,” Daza said.

“It’s the first in the country -- a PPP pharmacy,” he said, adding that such PPP forged in the past mostly involves the construction of highways, toll roads and airports.

Daza said the template of the arrangement was similar to that of a mall operator to their tenants.

“If you open at the Robinsons Mall for example, you pay your space plus your gross sales. We just copied it,” the governor said.

The company will occupy around 25 square meters with an extension of another five square meters. Under the revenue code of the province, a square meter has floor price of P300.

Daza said aside from generating an income out of the partnership, the “inefficiencies” common in pharmacies run by a local government could now be addressed.

Lack of medicines, higher price and even non-operational of a pharmacy inside the hospital were among the inefficiency cited by Daza common in a public hospital.

“Under the agreement, the PDC has to follow certain performance criteria - they have to operate 24/7; they have to have fully stock the pharmacy with medicines; the pricing has to be within the Department of Health (DOH) and Philippine Health Insurance Corp (Philhealth) guidelines that mean cheaper compared to others,” Daza said.

Daza admitted that as a provincial chief executive, he is not trained to govern the hospitals under the management of the Provincial Government.

The Provincial Government maintains the Northern Samar Provincial Hospital and eight district hospitals across the province.

“By allowing the private sector to participate, they can help improve the delivery of health care services,” Daza said.

For her part, Ludette Fuentes, branch manager of the PDC, said they are happy that they would help the Provincial Government in providing “quality but cheap” medicines to the people of Northern Samar.

“And we are upbeat that our operations here in Northern Samar would be a success. We will guarantee that not only the medicines will be available, but these are of good quality and at a lower price compared to those from other drug companies or pharmacies,” she said.

The company, which is based in San Juan and been in the business for more than 10 years now, won the bidding held last June of this year.

The company expects to operate by November 28 of this year. It plans to hire at least nine personnel with the current employees having the “first option” to be hired by the company. (Leyte Samar Daily Express)