Panama Saves $37.4 Million on Medication Purchases

Panama's Social Security Fund saved $37.4 million on medication purchases through strategic decisions by the president and health minister. Savings were achieved through procurement optimization and new legislation.


The Social Security Fund (CSS) of Panama saved $37.4 million in the purchase of medications, as a result of the strategic decisions driven by the President of the Republic, José Raúl Mulino, in coordination with the Minister of Health, Fernando Boyd Galindo, and the backing of the institution's Board of Directors. This process was made possible by the application of Executive Decree 12 of June 25, 2025, which promotes economies of scale, strengthens competition, guarantees high-quality standards, and establishes mechanisms for the automatic recognition of the sanitary registration of medications manufactured and approved in countries with regulatory authorities recognized by the World Health Organization (WHO). According to the CSS, the institution's technical and operational management team carried out three procurement acts that included regular, chronic, and in-hospital medications, reducing the initial estimated cost of $229.8 million to a final award of $192.4 million. It was detailed that this plan contemplates the incorporation of staff and telemedicine as a necessary complement, the optimization of processes, and the development of a more efficient and accessible technological platform, as well as medical-scientific developments aimed at measuring the effectiveness of long-term use medications in patients with chronic diseases. The general director of the CSS, Dino Mon, said:

“These savings will be reinvested in the regularization and modernization of the medical appointment system, reducing the backlog in this area to a minimum for 2026.”

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