MSH focuses on strengthening health systems by understanding the whole system. From urban hospitals to remote rural clinics, a significant cross-cutting feature of a successful health system is the availability of high quality pharmaceuticals. Based on our 50 years of experience in health system strengthening in more than 150 countries, MSH knows that it is vital to engage the private sector to create sustainable local businesses that enable countries to build their own health systems effectively for the long term.

MedSource is owned by MSH but operates independently with its own governance structure, including a board of directors, staff, and a management team. Our research and experience show that when people in low- and middle-income countries are sick, they often seek treatment from a private-sector provider—such as a retail pharmacy—first. By establishing a GPO to help private pharmacies and other health facilities procure products, we’re using a new way to address barriers that may exist for people in accessing safe, quality assured, and affordable medicines.

MedSource seeks to reduce costs while guaranteeing quality across the entire pharmaceutical supply chain through our members. We work with manufacturers and distributors to give our members better access to quality-assured medical supplies at negotiated costs. Members can use the MedSource platform to place their orders directly with suppliers. MedSource does not purchase or stock medicines and supplies on behalf of its members, who can continue to operate independently and conduct business with non-MedSource suppliers. MedSource also helps members build sustainable businesses and gives them the tools they need to grow and prosper. Services include:

• Supporting training on business skills, pharmacy practices, and inventory management
• Working with financial partners to facilitate access to credit for members
• Providing information technology solutions for improved integration and tracking of business transactions

Members benefit from purchasing medicines of assured quality at lower costs. They also benefit from access to credit to expand their businesses, capacity building services, and technology solutions. For example, members are offered access to software to manage their inventory and prevent stock-outs. The ultimate beneficiaries of MedSource are the patients who, by seeking services through participating health providers, are guaranteed quality-assured products and an increased likelihood of a better health outcome.

A group purchasing organization (GPO) allows independent pharmacies, pharmacy chains, hospitals, and other health care providers to buy goods and services at better prices than are usually available to them. It does this by leveraging the combined buying power of its member pharmacies and negotiating discounts with manufacturers, distributors, and other vendors. Because of the economies of scale, every member reaps benefits similar to the largest volume purchaser.

As a GPO, MedSource’s purpose is to improve accessibility and availability of affordable, quality medication and laboratory and health supplies for health care providers and ultimately the population at large.