Universal HealthcareBy NextBestFit
Phase 1: Enactment & build · Step 1.9

Create the national formulary & negotiate drug prices

Months 0–18 for the initial formulary; continuous negotiation · National Formulary and Pricing Board; HTA InstituteDiscuss this step
← All system changes for this step

Group purchasing organizations & drug wholesalers

amendedYears 2–4Drugs & devices
Today

GPOs negotiate hospital supply prices and collect administrative fees from suppliers; three wholesalers distribute most drugs.

Under the plan

Continue for logistics; national reference prices for drugs and high-cost devices reduce their negotiating role.

Trade-off

Less opaque fee income in the supply chain; less room for hospitals to negotiate below reference prices.