ABSTRACT
For example, each time new drugs are needed, a hospital’s purchaser (who may be a member of hospital staff or a purchaser for a larger group of hospitals) is unlikely to visit a pharmacy and make a series of purchases on a one-off basis. It is more likely that a long-term contract is entered into with a pharmaceutical supplier which speci es, among other things, ordering procedures, negotiated prices associated with particular purchased quantities, quality speci cations and delivery schedules. A series of purchases over a given time period are likely to be covered by the contract, and the current contract may be the latest in a series, with the expectation on both parts that the contract plays a role in a long-term relationship between the supplier and hospitals. Even this is a relatively straightforward situation compared with the kind of contract that would need to be developed in relation to the maintenance of the hospital’s building and equipment. In this case, the services required over a given time period cannot all be speci ed in advance, since breakdowns are not fully predictable. It may be wise, for reasons we will explore further below, to specify a payment arrangement other than a price per service. Quality speci cations are more dif cult to write. A contract covering maintenance in hospitals in Bangkok is one of those considered in Box 13.1.
