Procurement Practices and Cost Reduction in Public Hospitals: A Case Study of Federal Medical Centre, Asaba, Delta State

This study examines how procurement practices influence cost reduction efforts in public health institutions, using the Federal Medical Centre in Asaba, Delta State, South South Nigeria, as a case study. Public hospitals in Nigeria continue to grapple with chronic underfunding, making efficient procurement a critical tool for stretching limited budgets. The research focuses on procurement planning, supplier evaluation, bid documentation processes, and contract management as independent variables, while cost reduction is measured through medicine expenditure per patient, equipment procurement lead times, and vendor payment cycles. A descriptive survey design is adopted, with structured questionnaires and semi-structured interviews administered to 80 procurement officers, pharmacy staff, and administrative heads in the hospital. Qualitative responses are content-analysed, while quantitative data are subjected to correlation and regression analyses. The study draws on recent public procurement literature and health supply chain frameworks developed for sub-Saharan African health systems. Preliminary evidence from the hospital's procurement records suggests that non-competitive tendering and sole-sourcing inflate material costs by an estimated 20 to 35 percent above market rates. The findings are intended to support the hospital's compliance with the Public Procurement Act and to serve as a reference for other federal medical institutions seeking to implement cost-effective procurement reforms. Keywords: procurement practices, cost reduction, public hospital, Delta State, supply chain.