Executing monopsonistic purchasing power
NHSO exercised the monopsonistic power, as a single purchaser,
to negotiate with suppliers of medicines and supplies over price
given an assured quality. A committee consisting of NHSO officers
and technical experts processed the open bidding and direct
negotiation with oligopoly and monopoly suppliers. The priority
items were those with high costs and/or high volumes. Table 4
summarizes total saving from exercising monopsonistic power, up
to US$ 188 million in recent few years.