AMGROS REGIONAL AUTHORITIES PHARMACEUTICAL PROCUREMENT SERVICE

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1 AMGROS REGIONAL AUTHORITIES PHARMACEUTICAL PROCUREMENT SERVICE Amgros manages procurement of drugs and hearing aids for public hospitals in Denmark. We monitor developments at Danish hospital pharmacies and our other collaboration partners; we take heed of their needs and bring new ideas to the floor. Through collaboration we ensure uniform high standards in drug treatment, and secure the most cost-effective health solutions.

2 - OUR PRIMARY TASK IS TO ENSURE PROCUREMENT OF THE RIGHT PHARMACEUTICALS AT THE RIGHT PRICE WITHOUT COMPROMISING QUALITY. FLEMMING SONNE, CEO OF AMGROS PAGE 2

3 AMGROS A REWARDING PARTNERSHIP Amgros is a public-sector organisation owned by the Danish regions. Our primary task is to ensure that Danish public hospitals always have the drugs they need and at the best possible price. We carry out tendering procedures and bulk purchasing, and we manage registration and coordination of all pharmaceuticals produced at hospital pharmacies in Denmark. We are also responsible for the procurement of hearing aids for hearing clinics throughout Denmark. We save the regions as much as DKK 1.6 billion annually. In addition to these verifiable savings, we promote quality, development and safety in drug treatment across Danish regions through research collaboration with the hospital pharmacies. We also provide administrative support to hospital pharmacies, allowing them to focus more intensely on their core tasks. You can read more about us on the following pages and learn how you can benefit from a partnership with us; whether you are a supplier, government official, politician or healthcare employee. PAGE 3

4 AMGROS AMGROS IN PRACTICE Resource optimisation is the common denominator for all activities at Amgros. More specifically this means savings from volume discounts and benefits from being attuned to the current competitive situation in the market. In a broader sense, this also means establishing synergies and best practices across regions. Insights into tendering Amgros was established to ensure the right pharmaceuticals at the right price. In practice, this means that we make calls for tenders for the supply of pharmaceuticals. We adjust our tendering to the current market situation in order to optimise competition both now and in the future. As professional buyers, we are constantly on the lookout for same-quality but cheaper alternatives to existing pharmaceuticals. The tendering unit employs pharmacists who scan the market, make decisions about new products and look at possibilities for substitution or parallel import. As a supplier, you can benefit from our unique internet-based tendering system, which ensures easy workflows, transparency and equal treatment for everyone submitting a tender. Efficient processes Trading is made easier for both suppliers and customers through Amgros. Our specially tailored ICT systems support the business processes of Amgros and at hospital pharmacies, hearing clinics and suppliers. Hospital pharmacies and hearing clinics achieve considerable administrative savings by shopping in one place, and a fully integrated order management system enables smooth communication between customer and supplier. The efficient ICT systems also mean that Amgros does not have to manage and run stocks: Hospi- PAGE 4

5 AMGROS SERVES HOSPITAL PHARMACIES INTERESTS ACROSS REGIONS AND ENSURES THE SUPPLY OF PHARMACEUTICALS. tal pharmacies order drugs directly from the supplier through our online trading system. Managing documentation Some drugs are manufactured at Danish public hospitals. These are called hospital pharmacy drugs, because they are produced by the hospital pharmacies. This drug production meets important needs in relation to security of supply and emergency preparedness. Preparing the documentation for these drugs is an extensive task, as is applying for and updating the required marketing authorisations for approximately 80 products. By managing both of these challenging tasks, Amgros therefore provides valuable help to Danish hospital pharmacies, hospitals and regions. Focus on research The quality of drug treatment needs to be constantly high. So does the level of patient safety. Amgros works to ensure and improve both. To this end we collaborate with the hospital pharmacies within the framework of The Danish Research Unit for Hospital Pharmacy (SAFE). Here, we initiate and provide support for research and development within clinical pharmacy and rational and safe management of drugs. We have therefore centered research and development skills in a single place, while at the same time we ensure that results reach all hospital pharmacies, so that new knowledge and best practice are shared and implemented across regional borders. PAGE 5

6 AMGROS DANISH HOSPITAL PHARMACIES IN BRIEF Amgros and the Danish hospital pharmacies are inseparably linked. Through its close contact with the eight Danish hospital pharmacies, Amgros collaborates with the Danish regional authorities. The hospital pharmacies and Amgros are owned by the regions. The hospital pharmacies are linked to the Danish public hospitals and are responsible for supply of pharmaceuticals to hospital departments. Their primary responsibilities include: - procuring, distributing and providing information about drugs to hospital departments; - contributing to optimal, rational and safe use of drugs in collaboration with other specialist groups at clinical departments; - ensuring that the drugs needed are available at the departments; - providing information about and ensuring the correct storage of drugs; - manufacturing patient-specific drugs as well as basic products; - carrying out quality assurance and control of drug management. Amgros is responsible for tasks that can be carried out collectively on behalf of all hospital pharmacies. By letting Amgros perform tasks for all hospital pharmacies and regions across Denmark, the regional authorities achieve economies of scale, administrative savings, as well as a higher level of both quality and safety. PAGE 6

7 WITH AMGROS 2+2 CAN GIVE 5 WE HAVE GOOD COLLABORATIONS WITH AMGROS WHO MAKE OUR IDEAS A REALITY. THEY ARE AN ESSENTIAL COLLABORATION PARTNER IN CONNECTION WITH EFFICIENT PROCUREMENT, DIFFICULT CHANGES OF SUPPLIER, AND INTELLIGENT ICT SOLUTIONS. TOGETHER WE ARE ABLE TO DEVELOP THE MANUFACTURE AND MANAGEMENT OF DRUG PRODUCTS MORE RATIONALLY AND WITH HIGHER-QUALITY RESULTS. EVERYDAY BUSINESS WOULD JUST NOT BE THE SAME WITHOUT THEM. LISBETH MUURHOLM, HOSPITAL PHARMACIST AT ODENSE UNIVERSITY HOSPITAL PAGE 7

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9 WITH AMGROS, THE REGIONAL AUTHORITIES HAVE A STRONGER POSITION AS BUYERS IN THE DRUGS MARKET. THROUGH JOINT PROCUREMENT VIA AMGROS, THE REGIONAL AUTHORITIES ARE ABLE CONTINUOUSLY TO MAXIMISE THE PROCUREMENT VOLUME THEY PUT OUT TO TENDER; THUS GETTING HOSPITAL DRUGS AT A CHEAPER PRICE. THE REGIONS HAVE TO KEEP FOCUS ON ACHIEVING MORE HEALTH FOR THE MONEY. BECAUSE OF AMGROS, WE HAVE OBTAINED CONSIDERABLE DISCOUNTS ON HOSPITAL DRUGS. ADAM WOLF, CEO, DANISH REGIONS PAGE 9

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11 IN THE MIDST OF THE DANISH PUBLIC HEALTH SERVICE Amgros is owned by the regions and procures drugs and hearing aids for the Danish public health service. Through dialogue and collaboration we can achieve uniform high standards in drug treatment, and secure the most cost-effective health solutions. THE MINISTRY OF HEALTH DANISH HEALTH AND MEDICINES AUTHORITY REGIONS HOSPITAL PHARMACIES PHARMACEUTICAL SUPPLIERS HEARING AID SUPPLIERS HEARING CLINICS PAGE 11

12 AMGROS WE PROVIDE ADDED VALUE Amgros provides real benefits for the public Danish health system. This is Amgros strength and its raison d être. However, the way we carry out procurement and collaborate with our stakeholders also yields positive results elsewhere than on the bottom line. Collaboration acumen Amgros possesses legal, pharmaceutical and administrative expertise and insights into the pharmaceuticals market, and this expertise puts us in a unique position to help our collaboration partners. We can help our partners with everything from understanding complex procurement and tendering regulations in the health sector to applying for marketing authorisations from the Danish Health and Medicines Authority. In all we do we strive to protect and help our stakeholders, the hospital pharmacies in particular, so that they can focus on their core tasks and achieve the best possible results. Innovation is our tradition Amgros is a flexible organisation that encourages synergies and inspiration across specialist fields and areas of work. We prioritise close dialogue with hospital pharmacies, physicians, hospitals, suppliers and other stakeholders. We are always available for our stakeholders, we adapt to their demands and we inspire them through communicating knowledge, recommendations, trends, ideas and initiatives. PAGE 12

13 WE USE AMGROS AS THE ORGANISATIONAL PLATFORM WHENEVER IT MAKES SENSE FOR THE HOSPITAL PHARMACIES TO JOIN FORCES AT NATIONAL LEVEL. THIS IS PARTICULARLY RELEVANT IN CONNECTION WITH PROCUREMENT AND MANUFACTURE OF DRUGS, DEVELOPMENT OF COMMON ICT SOLUTIONS, AND IN CONNECTION WITH COMPETENCE DEVELOPMENT. TOGETHER WITH AMGROS, WE CREATE SOLUTIONS THAT PROMOTE PATIENT SAFETY IN CONNECTION WITH DRUG USE AT DANISH HOSPITALS. LARS NIELSEN, HOSPITAL PHARMACIST AT THE CAPITAL REGION OF DENMARK. PAGE 13

14 AMGROS AMGROS 2014 For the approximately 25 years Amgros has existed, it has generated savings worth billions for Danish public hospitals. Due to mergers, changes to its structure, and, not least, constant development, Amgros is today an indispensable link in the Danish health service. The former Danish counties established Amgros in 1990 in order to gain administrative savings through joint procurement of pharmaceuticals. Today, Amgros is owned by the five Danish regions, and although its objective remains the same: savings in connection with procurement of pharmaceuticals; the company has broadened into something much more than a trading company. Amgros now employs around 90 employees, primarily pharmacists, as well as administrative and ICT staff. Politicians and government officials can benefit from Amgros - raising competition in the pharmaceuticals market; - obtaining considerable discounts; - ensuring development and research in the pharmaceuticals area; - managing the procurement of hearing aids and audio technological devices for Danish public hearing clinics; - generating drug consumption reports - ensuring more health for the money. PAGE 14

15 Hospitals and hospital pharmacies can benefit from Amgros - managing administrative tasks for hospital pharmacies; - being a close collaboration partner; - promoting the cause of hospital pharmacies with politicians; - safeguarding the operation and development of hospital pharmacies national solutions; - supporting competence development at hospital pharmacies; - being a close collaboration partner in all core areas; Suppliers can benefit from Amgros - ensuring transparency and equal treatment in the tendering process; - making trading and submitting bids easy through specially tailored online systems; - being a professional collaboration partner that makes the right demands and challenges. PAGE 15

16 AMGROS HEALTHY BUSINESS In a time when expenditure on pharmaceuticals in the health sector is increasing drastically year by year, its good to know that - Amgros ensures public savings of around DKK 1.6 billion annually. - Amgros primary purpose is to create administrative savings and volume discounts through joint procurement of drugs and hearing aids. - As much as 99% of drugs used by Danish hospitals have been traded through Amgros. - Amgros share of the total pharmaceutical market is more than 50%. - Amgros provides Danish regions with added value by collaborating with hospital pharmacies on research, regulatory affairs, and development. - Amgros contributes to patient safety, including through a safe label design on all drugs manufactured by Danish hospital pharmacies. - Amgros uses a business model that is based 100% on ICT, covering the complex tendering procedure from initial budgeting to EU tendering and finally to followup on consumption patterns. AMGROS I/S DAMPFÆRGEVEJ COPENHAGEN Ø TEL.: FAX: