Methods and Approaches for Purchasing Medical Equipment

Direct Purchase

Direct purchase means purchasing directly from a supplier, negotiating the terms and prices, and contracting with them without contacting other suppliers. This method is used in the following cases:

1. Monopoly, where the item is available from only one supplier.
2. Items subject to a fixed or mandatory price list, in which case the purchase is made at the specified price.
3. Low-value items or small quantities.
4. Urgent situations where there is not enough time to follow other procurement methods.

Direct purchase is usually subject to a maximum value specified in the country’s procurement law.

In most cases, direct purchasing covers only small medical devices, as the prices of larger medical equipment are often above the direct-purchase threshold.

Because of the high cost of medical equipment, other methods such as tenders or negotiated procurement should be used to ensure competition and obtain the best prices and terms.

Negotiated Procurement

Negotiated procurement means completing the purchase after negotiating with a selected group of suppliers. It is used in the following cases:

1. Items manufactured or traded by only a limited number of suppliers.
2. Technically specialized items that only a limited number of suppliers can provide.
3. Items previously offered through an open tender, where all prices were found to be unacceptable, and time constraints do not allow repeating an open tender.

Limited Tender

A limited tender is a type of tender in which participation is restricted to a limited number of suppliers registered in the supplier registry. Selection should take financial capacity and good reputation into account.

The same rules and procedures governing an open tender apply, except for the requirement to advertise in newspapers or official platforms. Selected suppliers are invited to participate through an official letter.

Difference between a tender and negotiated procurement

The difference lies in how financial offers from technically qualified companies are handled.

In a tender, the financial offers are evaluated without any changes or modifications.

In negotiated procurement, the technically qualified companies negotiate their financial offers with the aim of adjusting them.

Open Tender

An open tender is a procurement process in which a public invitation is issued through newspapers or approved platforms to all potential suppliers, allowing them to participate in the tender. The goal is to promote competition and obtain the best terms and prices.

Because most medical equipment and supplies are expensive, hospitals usually use open tendering. It is considered the most effective and preferred method for ensuring transparency, competition, and value for money, as it provides equal opportunities for all suppliers and ensures compliance with laws and regulations.

Upcoming Articles

The remaining articles in this series will, God willing, focus on the details of the open tender procurement method.