Drug Price Reference Index

Republic Act (RA) 9502 otherwise known as the Universally Accessible Cheaper and Quality Medicines Act of 2008 has set forth several instruments to monitor and regulate the prices of medicines with the objective of protecting the consumers and the public procuring entities from excessive mark-ups due to information asymmetry and lack of effective market competition.

To address these issues, the DOH Pharmaceutical Division established the Drug Price Reference Index (DPRI) for all essential medicines to guide all national and local government health facilities in the efficient sourcing of pharmaceutical products in the public sector.

The DPRI aims to guide all public health facilities in the fair pricing of essential medicines and to increase the efficiency of drug procurement process in the public sector. Likewise, it aims to maximize the health care budget by generating savings to prevent corruption in the sourcing of essential medicines not only among DOH hospitals but also across all public health facilities

Frequently asked questions

The DPRI is the ceiling price of essential medicines for government bidding and procurement set by the DOH for all National and Local Government Health Facilities and government Agencies.

All government entities should be guided by the DPRI when procuring medicines. It shall be applied to all forms of procurement such as public bidding, direct contracting, shopping, negotiated procurement, emergency procurement and consignment to ensure that the government achieves the best value for money in sourcing essential medicines.

The DPRI is calculated based on the prevailing tender prices of the previous year as reflected in the actual Purchase Orders (POs) submitted by the DOH Retained Hospitals and Centers for Health Development (CHDs).

The reference price is set at the median or the 50th percentile across the range of prevailing tender prices of essential medicines for each preparation and strength. However, for drugs and medicines with only two entries, for patented drugs and medicines and with limited competition the reference price is set based on the lowest tender price. Health facilities may add an allowable margin of up to 10% to account for the inflation.

The DPRI is updated annually. All DOH hospitals and CHDs submit a copy of their latest Purchase Orders to the DOH Pharmaceutical Division for annual collection and analysis of price data. The updated DPRI is based on the procurement price data of medicines from the previous year

Related Issuances

News and updates regarding THE DRUG PRICE REFERENCE INDEX

related links

Philippine Standard time

Contact Us:

Telephone Number: 02-8757734 Loc. 253

Address: 4th Floor, Philippine Blood Center, Lung Center Compound, Quezon Avenue, Quezon City

Email Address: dohncpam@gmail.com