Health Ministry cuts spending by 50 percent

The Ministry of Health has asked its various departments to review current inventories to ensure the availability of medicine and medical devices.
The move was made after Health Minister Khalid Al-Falih ordered the reduction of medicines and medical device purchases by 50 percent. Medical industry sources said they believe the reduction of purchases is in line with attempts to cut costs and streamline the ministry’s operations.

“This would be in keeping with the times when there’s need for wise and tight spending. The Health Ministry does not want to stock up on medicines and medical items that the Kingdom does not yet need,” one source said.

Ahmed bin Hassan Al-Meselhi, director general of the ministry’s supply department, said he had issued a circular regarding the order.
The circular was issued in coordination with concerned entities and groups such as the executive board of the Heath Ministers of the Gulf Cooperation Council, Noico Unified Procurement and various suppliers.

The groups were also directed to submit their reports regarding the impact of the reduction of Health Ministry purchases on the population in general in 30 days. He said the circular demanded the cancelation of 30 percent of the items already ordered from the suppliers amounting to about SR100 million.
He stressed, however, that there would not be cuts to spending on serums and vaccines. The ministry would supply vital items if needed, he said.