New Mechanism for the Procurement of Medicines and Medical Supplies in Mexico.

November 14, 2024

In a conference held on October 31, 2024, President Claudia Sheinbaum presented the New Consolidated Procurement Model for Medicines and Medical Supplies for the 2025-2026 period, which will involve an investment of 130 billion pesos.

The Undersecretary for Integration and Development of the Health Sector, reported that the new biennial procurement mechanism for the 2025-2026 period will involve the participation of 26 public health institutions. It is expected that a total of 4,454 product codes for medicines and medical supplies will be submitted, representing the largest procurement in terms of participating institutions, volume, and product codes. The total volume is projected to reach 4,934 million units.

This consolidated procurement model is structured in the following stages under the supervision of the Ministry of Health:

1. Diagnosis of Current Supply (conducted from October 1 to October 25, 2024).
2.  Health Institutions, including the Mexican Institute of Social Security (IMSS), IMSS – Bienestar, the Institute of Security and Social Services for State Workers (ISSSTE), National Institutes of Health, the Secretariat of the Navy (SEMAR), and the Coordinating Commission of National Institutes of Health and High Specialty Hospitals (INSHAE), will define the medicines and supplies they require, as well as the delivery points.
3. The Ministry of Health will validate the needs of each institution.
4. Public Call for Comments and Discussion, until November 8, 2024.
5. Public Tender and Contract Awarding (to be carried out between November and December 2024).
6. Laboratorios de Biológicos y Reactivos de México (Birmex) will execute the consolidated procurement.
7. Commencement of the Delivery Process for medicines and other health supplies (starting March 1, 2025).

On the other hand, several principles have been outlined to develop the mechanism:

• Transparency and National and International Participation to promote competition.
• Cost-Benefit Evaluation for delivery.
• Implementation of Digital Systems throughout the entire process, including the execution of the procurement.
• Clear Definition of Delivery Dates and Volumes.
• Planning, prioritizing biannual purchases to secure better price guarantees and ensure supply.
• Monitoring and Strict Penalties for non-compliance by suppliers.

Finally, although the “General guidelines for carrying out the consolidated procurement procedure for medicines and health supplies for fiscal years 2025 and 2026” do not specifically mention the protection of intellectual property rights, these guidelines are based on the Public Sector Procurement, Leasing, and Services Law, which provides for the protection of such rights.

OLIVARES will closely monitor this new mechanism, as well as any other matters related to the health of Mexican citizens.