ADQ launches Rafed to leverage healthcare purchasing power in the UAE

Sep 1, 2020

News

  • The new Group Purchasing Organization (GPO) aims to enhance quality and reduce cost of healthcare product procurement
  • Healthcare providers will now benefit from more effective and reliable procurement services

ADQ, one of the region's largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi's diverse economy, has announced the launch of Rafed, a new Group Purchasing Organization (GPO) to manage and develop the procurement of healthcare-related products and services.

Rafed will initially be responsible for the primary procurement needs of Abu Dhabi Health Services Company (SEHA), which include supplier sourcing and contract management, procurement ordering services, warehousing, and distribution. In the future, Rafed will also aim to incorporate other local and regional healthcare providers into its procurement programme.

The long-term aim of Rafed is to ensure the availability and quality of essential goods and services for the healthcare sector, which include pharmaceuticals, equipment and consumables. In doing so, it will seek to reduce operating costs for healthcare providers and ensure effective procurement and delivery mechanisms by establishing competitive contracts with leading suppliers. Rafed will also collaborate with healthcare regulators on the implementation of enhancement initiatives.

Jaap Kalkman, Chief Investment Officer at ADQ, said: "ADQ is taking the lead in creating a solution that directly addresses a need that exists across Abu Dhabi's healthcare sector. Rafed will aim to be a value-driven and centralised healthcare procurement specialist. By bringing together procurement, warehousing and distribution of healthcare products and supplies under one roof, we will be able to enhance the quality and cost of purchasing and ensure consistent availability and standardisation of essential requirements."

Dr Gareth Goodier, CEO of SEHA, added: "The establishment of Rafed will offer a broad range of strategic services that benefit the healthcare sector significantly. It is not just about price and quality. If we can rely on a guaranteed supply of the items via an independent third party, we can maintain even greater focus on providing the highest quality of healthcare services to citizens and residents of Abu Dhabi. A specialist approach will also help us identify bona fide suppliers based on proven technical capabilities."

Through a GPO model, members of Rafed will experience a higher level of savings and more efficiency to the overall healthcare product and equipment purchasing process. Rafed will also enhance the supply chain for its member organisations by providing greater reassurance of availability and delivery, and a reassurance on the source of supply. Additionally, the new entity will help to convert individual contracts currently being managed on a facility-by-facility basis to become part of a larger and more coordinated approach in which economies of scale help to reduce cost and enhance security of supply.

Abu Dhabi Health Services Co. (SEHA), the UAE's largest and most comprehensive healthcare network, and National Health Insurance Company (Daman), which the UAE's leading health insurer, are also part of ADQ's healthcare portfolio.

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