Medicine and Medical Supplies Efficiency Gains – Spending Review Report

In 2020/21, the Eastern Cape Department of Health spent R3.67 billion on medicines and medical supplies. Expenditure on medicines accounted for 74% of this and expenditure on medical supplies accounted for 26% of this. In contrast in 2016/17, aggregated expenditure was R1.74, and expenditure on medicines accounted for 80% of the total. Over the period 2016/17 and 2020/21, total expenditure on medicines and medical supplies grew at an annual rate of 21% per annum which is significantly higher than the average medical inflation of 8-11% per annum. Expenditure on medicines grew at a rate of 18% per annum, whilst expenditure on medical supplies grew at a rate of 28% per annum.