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A cost analysis of medicine donation programs to Tanzania’s neglected tropical diseases control program

Masters of Public Health - see Magister Public Health / Overreliance on donor supported health programs has crippled many African countries and
there is inadequate long-term planning on the future sustainability of health systems. In the
age of uncertainty in global politics and global economy, the future of these donor funded
programs is also uncertain. It is imperative for African nations to begin to take
responsibility for their health programs.
In as much as the name “donation” suggests that something is given free of charge, in actual
sense this may not be the case due to hidden costs attached. In medicine access, the hidden
costs are the supply chain costs including cost for clearance, storage and distribution of
such medicines which are charged as a percentage of claimed commodity costs on donors’
or suppliers’ invoices.
Since the medicines donated are in originators’ brands, the invoiced prices are high thus
supply chain costs are high as well. In some cases, it is thought that the hidden costs are
higher than the cost of medicines had they been sourced locally as generics.
The aim of this research was to assess and determine the hidden supply chain costs
associated with the four medicine donation programs supporting the Tanzania Neglected
Tropical Diseases Program and inform policy decision on optimal financing options for the
program
Methodology
The cost analysis of the two options was undertaken from a payers’ perspective which in
this case is the Government of Tanzania (Ministry of Health). Data was collected on both
product and supply chain cost drivers incurred in the medicine donation programs from
July 2014 to June 2017. Costs of the current mechanism were obtained from the program’s
quantification reports and transaction data for the study period. Transactional data was
obtained from shipment documents including sales invoices, parking list, proof of delivery
and goods receiving notes were evaluated for actual quantities shipped, commodity prices
and other supply chain cost. To verify the actual supply chain cost charged by the program,
both the official bills from Medical Stores Department (MSD) to the program and the
electronic bills available at MSD electronic database covering the study period were
studied.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uwc/oai:etd.uwc.ac.za:11394/7055
Date January 2019
CreatorsRassa, Adam Omary
ContributorsTabana, Hanani
PublisherUniversity of the Western Cape
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
RightsUniversity of the Western Cape

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