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PHA 'victim' of price gouging

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Public Hospitals Authority (PHA) yesterday reiterated that it had no policy to exclude Bahamian medical equipment and pharmaceutical suppliers from its Critical Care Block expansion tenders, stating it had spent almost $124 million with local distributors over the past five years.

Blasting as “irresponsible” claims to the contrary made by Winston Rolle, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, who was speaking on behalf of the suppliers, the PHA said there was no evidence to support his claims, while alleging that other facts had been “ignored”.

And, in a seeming swipe at Bahamian suppliers, it alleged that it had discovered evidence that it may have suffered from “significantly over-priced supplies and price gouging”. It appears to be using this as its justification to look abroad for medical equipment and drug supplies, in a bid to get ‘value for money’.

“Since 2007, the Public Hospitals Authority has spent some $123.639 million with local companies on medical equipment, medical supplies and drug purchases,” the PHA said in a statement.

“Of that figure, $71.724 million has gone to drug supply purchases with two of the 25 local vendors taking the lion’s share in the amounts off $27.532 million and $26.599 million during that time period.

“Of the $45.041 million spent over the same five-year period on medical supplies, the Public Hospitals Authority has maintained a consistent relationship with local vendors, evidenced by routine purchases that range between $1 million and $2.5 million annually, in particular among four local vendors.”

It added: “In the instance of one local vendor, the Authority vested some $9.558 million over the five-year period. The same is reflected in equipment purchases where three local providers and well-known Bahamian companies were chief suppliers to the PHA in purchases totalling more than $4 million.

“Our track record - which is supported by a consistent schedule of RFT’s (Requests for Tenders) for the Critical Care Block project, is indicative of our steady and fair relationship with our local suppliers.

“In fact, we found it amusing that on the date Mr Rolle was party to the article “‘hammering the PHA’, we were mailing RFT’s to those same local companies and we were in receipt of at least several proposals from one of our biggest suppliers.”

The PHA added that since it was funded by Bahamian taxpayers, it “has a special responsibility to assure value for monies spent.

“The PHA has the authority to look abroad when it is deemed the financial differences for equipment and supplies are too significant. In recent times, the PHA has had to be realistic that cost comparisons have revealed that, in certain instances the Authority may have suffered the casualty of significantly over-priced supplies and price gouging.”

And the PHA added: “The Public Hospitals Authority maintains that it seeks to assure all stakeholders and the Bahamian people, in particular, that we will not jeopardise existing contracts or imperil our high standards of care.

“With respect to distributors of medical and pharmaceutical equipment in the Bahamas, the PHA wishes to reemphasise that, while we seek an inclusive, fair and transparent process, we are cognisant that taxpayers are entitled to the best value possible for tax dollars with respect to the Critical Care Block - a substantial investment.”

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