3.1. BULK PURCHASING
Bulk purchasing experiences of health insurance systems in the survey countries demonstrate that it is possible to rationalize drug demand and obtain large scale economies when compared to buying by individual units. Schemes can vary, in contract provision types by insurers, or formation of cooperatives of hospitals specialised in consolidated purchasing.
3.2. PROFIT MARGIN NEGOTIATIONS
Another scheme to rationalize demand and procurement costs may be characterised as negotiation with manufacturers of a profit margin based on production costs. This requires the very strong negotiating power of a legitimate regulatory agency.