All government entities shall use 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 computed based on the prevailing public tender prices of the previous year reflected in the actual Purchase Orders (POs) submitted by the DOH Retained Hospitals, RHOs, Central Office Bids and Awards Committee (COBAC) and Philippine International Trading Corporation (PITC) Pharma Inc. (PPI) to the DOH. Only data coming from reputable suppliers are considered in the database which means that they should be licensed by the Philippine Food and Drug Administration (FDA) and have a certificate of Good Manufacturing Practice issued by the FDA.
The DPR is set at the Median or the 50th percentile across the range of prevailing tender prices of essential medicines. For medicines with less than four (4) manufacturers, the DPR may be set at the lowest winning bid price from a reputable supplier. Projected inflationary costs have already been considered in the calculation of the DPR.
For innovator drugs approved for inclusion in the Philippine National Formulary, the price may be set by referencing with relevant international markets particularly those with similar income status (i.e. Thailand, India). It may also be informed by economic evaluations conducted in the Philippines used by the DOH to value their claimed clinical benefits and negotiate tender prices where an innovative pharmaceutical product has only one sole supplier.
The DPRI shall be updated annually. All DOH hospitals and RHOs are directed to submit a copy of their POs of the previous year to the Pharmaceutical Division at or before the end of the first quarter of the succeeding year. The updated DPRI shall be based on the procurement price data of medicines from the previous year.