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Reforming ISSSTESON’s Public Procurement for Sustainability

image of Reforming ISSSTESON’s Public Procurement for Sustainability

This review analyses public procurement policies and practices of ISSSTESON, the institution providing health and pension services to the workers of the State Government of Sonora, Mexico. It benchmarks ISSSTESON practices against the 2015 Recommendation of the Council on Public Procurement to help the institute upgrade its procurement operations and increase efficiency, in a difficult financial environment. It also examines the revenue structure of the Institute and suggests reforms for the pension scheme, which is too generous compared to national and international experience.

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Foreword

Health systems are under increasing stress in OECD countries. Aging populations and the high incidence of chronic diseases, which require long and costly treatments, call for health systems to implement strategies that will maximise efficiency and minimise waste in order to preserve and, where possible, improve the availability and quality of health care services. This is all the more necessary in countries where access to basic public services such as health care are unequally distributed. With a Gini coefficient of 0.46, Mexico has the highest inequality rate among OECD countries. Already, Mexico has the lowest per capita spending on health care (USD 1 034) among OECD countries. In order to improve access to health care services, Mexico needs to spend more and spend better.

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