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Prices of medicine bought by state budget funds exceeded the market

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  • Prices of medicine bought by state budget funds exceeded the market

    Prices of medicine bought by state budget funds exceeded the market
    prices for several times: proceedings were initiated

    http://www.yerkirmedia.am/?act=news&lan=en&id=5406
    15:05 . 21/02


    State Commission for the Protection of Economic Competition initiated
    administrative proceedings today against 15 companies dealing with
    sale of medicines and 12 health institutions.


    The commission has found numerous violations during the state
    procurement process when investigating the activity of 134 health
    institutions and 314 companies dealing with sale of medicines involved
    in the state procurement.

    It has found there are violations of not announcing competition in 109
    of a total of 134 medical institutions. Particularly, 7 companies
    dealing with sale of medicines has participated in 37 competitions
    organized by 26 medical institutions, but the same company has won in
    all the cases. There are cases, when the medical institutions didn't
    announce a competition and always bought medicine from the same
    company.

    Moreover, an invoice was presented at the session, according to which,
    the medical institution has bought medicines by state funds at a price
    6 times higher than the market prices, and the head of the medical
    institution is the owner of the company supplying medicine.

    Cases were also uncovered, when the health institutions, which had to
    provide medicine to disadvantaged families within the frames of state
    programmes have guided the beneficiaries to pharmacies linked with
    them.

    Thus, the commission has concluded that a number of economic entities
    dominating in the market have abused their position, the agreements
    between medical institutions and supplier companies have been
    accompanied by non-efficient use of state funds and limitation of
    competition in the field. Proceedings were initiated against the
    companies and the institutions.

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