The Health Insurance Fund has disregarded warnings from the Ministry of Health and is proceeding with a tender valued at nearly 1.5 million euros for software purported to reduce prescription drug consumption.

Vojislav Šimun’s department has officially confirmed to “Vijesti” that they oppose the acquisition of this software. This discontent has also been communicated to the Fund’s management, its Board of Directors, and the Directorate for Public Procurement of the Ministry of Finance.

Board members from the Ministries of Health and Finance expressed skepticism toward this contentious multi-million-euro procurement, with these departments opting not to nominate any representatives to the tender commission.

Despite this, the Fund assured “Vijesti” that the software purchase would lead to annual savings of millions of euros, enhance patient safety in therapy, minimize errors, and facilitate quicker access to medications. They assert that implementation could begin as early as next year.

The Fund has reported expenditures of 25 million euros on pharmaceuticals in 2017, with projections indicating this could balloon to 70 million by 2023.

The Ministry of Health has raised concerns that this procurement does not align with their strategic vision for a cohesive and sustainable health information system.

“The Ministry of Health does not support this method of software procurement aimed at rationalizing prescription drug use. We promptly informed the Fund’s management, the Public Procurement Directorate, and the Fund’s Board of Directors via letters. Members from Health and Finance held a unified stance against the tender process, and neither department nominated representatives to the tender committee. Our position is reinforced by the ongoing development of the Integrated Health Information System (IZIS), which will be foundational for all current and future IT projects in healthcare. We believe further market research and analysis of best practices from the EU and beyond are required to create realistic and internationally harmonized specifications,” stated Minister Vojislav Šimun’s Ministry of Health.

The tender, issued in mid-May and concluding on June 13, specifies that the desired system should respond to user requests in no more than two seconds and maintain efficiency under load. When asked about the software’s price tag, the Fund defended it as necessary due to its complexity and the employment of a multidisciplinary expert team, including doctors, pharmacists, clinical informaticians, data analysts, and project managers, to meet the actual needs of the health system.

They noted that this also accounts for the crucial need for round-the-clock maintenance and support, as well as compatibility with existing primary health care systems like “Montefarma,” “Cinmeda,” and online services offered by private pharmacies. The system must prove reliable, given that over 25,000 prescriptions are dispensed daily, with software facilitating the digitalization, automation, and standardization of these processes.

“Rationalization entails systematic management and oversight of prescription drug use to cut unnecessary consumption, enhance patient safety, and ensure fiscal savings for the Fund. Our analyses reveal that implementing similar systems in the region has led to annual savings of 5 to 15 percent. The new software will ensure accurate and safe drug dosages by eliminating errors through digitalization, significantly reduce potential abuses (our analysis has shown that over 10 percent of prescriptions feature ambiguous ‘descriptive’ dosages lacking numerical control), and yield notable financial savings for the Fund—estimated at 5 to 15 percent each year—while fostering quicker responses through centralized analytics and alerts,” emphasized Vuk Kadić, director of the Fund.

The Fund indicated that drug expenditures have surged over the past five years from €25 million in 2017 to an anticipated €70 million in 2023, alongside escalating costs. They further pointed out the current lack of sufficient control over prescription practices or automated analytics to oversee abuse and unauthorized drug use.

Full System Implementation Expected by Early 2026

The Health Fund asserts that citizens can expect myriad benefits from the new software, such as enhanced safety in therapies, decreased error rates, quicker access to medications through optimization, and increased transparency in the prescribing and dispensing of drugs.

“Saved funds will be redirected to introduce innovative therapies, including those for rare diseases, thereby improving the healthcare framework, which translates to annual savings of several million euros. We anticipate tangible benefits for both the Fund and citizens within the first months of system implementation (full effects will manifest within six to twelve months). The complete procurement process, from tender announcement to full system commissioning, is projected to last between five and six months. Given the project’s complexity and integration requirements, we realistically expect full implementation by early 2026,” added the Fund.

They emphasized that this advanced system will algorithmically convert drug dosages into numerical formats for precise control and use algorithms to avert unwarranted or excessive prescribing, automatically generate warnings and recommendations, allowing the Fund to swiftly address irregularities. Additionally, artificial intelligence technologies, such as machine learning, natural language processing, automated decision support systems, and drug consumption analytics, will be leveraged.

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