Karnataka government has allocated a total of Rs 78 crore for purchase of drugs on Rate Contract (RC) from pharmaceutical companies. This amount is Rs 28 crore more than the previous allocation of budget for drug procurement in 2005-06, which was Rs 50 crore.

The government has entered into a Rate Contract with more pharmaceutical companies to facilitate direct, easy availability of drugs and to bring in transparency in distribution of medicines in the pharmacies at the government hospitals. Beginning from July 31, patients from the government hospitals can also avail of more prescribed drugs free of cost.

So far, more than 50 per cent of drugs supplied to government hospitals were being unutilised. Doctors and pharmacists always complained of drugs shortage. The State also managed to unearth instances where the doctors and pharmacists earned Rs. 15,000 to Rs.20,000 as commission through deals they struck with private clinics and hospitals for drug procurement. The unused drugs would be stocked until expiry date and then dumped into the garbage as it was discovered in Mangalore early this year by the Lok Ayukta.

To solve the problem of drugs shortfall, the State Directorate of Health and Family Welfare entered into a Rate Contract with more number of pharma companies only to facilitate direct availability of more number of medicines, Karnataka health and family welfare Dr R Ashok told Pharmabiz.

The free drugs will be available at eight government hospitals n the State: KC General Hospital, Jayanagar, Hospital, Epidemic Diseases Hospital, Leprosy Hospital, TB and Communicable Diseases Hospital, Yelahanka Hospital and Ghousia Hospital. All the district and 186 taluk hospital will have the same provision for dispensing drugs. All the counters will have an open storage concept. Stocks in each counter will be replaced every week. There will be signboards enlisting all the medicines available at the hospital. The counter will be opened on July 31 under the Karnataka Health Systems Development Project initiative.

According to Shivabasaviah, additional director, Karnataka Drug Logistics & Warehousing Society (KDLWS) the tendering procedure was on and that in the next 60 days the whole process would be streamlined. The availability of the number of drugs will increase from 226 to 700. The district and taluk hospitals would place their orders with the KDLWS, which in turn will take the care of the requirement by stocking them in the district warehouses for timely consumption.