Context
The central government's pooling of procurement when it comes to pharmaceuticals has the potential to completely transform India's healthcare sector.

Lost Chances in Central Health Programs  
·         Ignorance about Pooled Procurement: Despite their shown advantages for more efficient medication procurement, the Indian government pays little attention to pooled buyer models.
·         The Benefit of Corporate Hospitals: Direct negotiations between corporate hospitals and pharmaceutical corporations result in significant cost savings, yet patients still pay more.
·         Potential for Buyers' Clubs: By banding together in buyers' clubs, hospitals can increase their negotiating leverage and save costs for patients and non-profit organizations.

Achieving Cost Savings with Shared Procurement  
·         Model Cancer Grid Initiative: Up to 99% of the savings from the National Cancer Grid's group negotiations for 40 medications came to?13.2 billion.
·         Inconsistent Coverage in Schemes: The central government's coverage of beneficiaries under programs such as the CGHS is inconsistent.
·         Requirement for Centralized Procurement: By using pharmaceutical PSUs to set benchmark prices, the government can ensure competitive pricing and avoid depending on private producers.

Benefits Go Beyond Lowering Expenses  
·         Assurance of Quality via Buyers' Clubs: Superior drug quality is ensured by independent testing conducted by buyers' clubs, a regular procedure in industrialized nations.
·         Validating Empirically Centralized Procurement: Pooled procurement has real advantages, such as lower costs, more effective use of healthcare dollars, and easier access to medications.
·         Immediately Put into Practice Important: Centralized procurement is a powerful remedy that India needs to quickly implement widely.

LTX Mains Question: 
Q. "It is important to discuss the impact of pooled procurement on drug quality from the National Cancer Grid initiative." What actions can the government take to guarantee both the availability of life-saving medications and competitive pricing?