A Comparative Study of the Current and Alternative Purchasing Systems of Selected Government Specialty Hospitals: Implications on Hospital Management Education

Abstract

This study constitutes an attempt to highlight procurement and its critical and pivotal value in management designed to enhance the viability and profitability of service enterprises. The questionnaire instrument consists of questions framed and designed to elicit the 72 respondents’ assessment of the procurement systems and purchasing practices of their hospitals, and their familiarity with the Blanket Purchasing Order, Electronic Purchase Order, other Alternative Mode of Procurement systems and the Governing Principles on GovernmentProcurement. Follow-up in-depth interviews were also made where necessary. The study shows that hospital administrators/managers and rank-and-file employees admitted they were at ease with the existing procurement systems and purchasing practices of their purchasing department particularly on quality management of human resources, while medical suppliers said they moderately accepted the system. Also, the proposed procurement system, electronic procurement and blanket purchase order system, if adopted and fully implemented will enhance the procurement process system of the three hospitals under study, foster transparency, competitiveness and accountability which constitute the pillars of a sound public procurement, thereby, increasing procurement efficiency and effectiveness. It is highly recommended that the hospital must adopt and strictly implement R.A 9184 and the new G-EPS or the new government electronic procurement system through a computer in all government agencies. This would entirely revolutionize procurement, minimize if not eliminate graft and corruption in government procurement, and generate substantial savings for the government; promote the extensive use of electronic procurement via the Internet which has already proven to be more time-efficient and cost-efficient efficient and less prone to irregularities; require government institutions to adopt the E-Procurement and the Blanket Purchase Order systems which have been found convincingly meritorious and beneficial as proven at the Philippine Heart Center, and that state agencies undertake appropriate technology and training for their officers and personnel staff. To further consolidate the advantages and benefits of the E-Procurement and Blanket Purchase Order systems by state agencies that will adopt them, values orientation must also be made an integral part of training programs.