Corruption in the procurement process can have a substantial impact on health. A study by the WHO (2008) estimates that 10-25% of drug procurement costs are lost to corruption. Any funds stolen in the process of purchasing drugs and equipment or building and maintaining facilities are not available to be put towards the ultimate goal: providing adequate and equitable access to health services. In the worst case scenario, corruption during the procurement process can lead to endangered patient health, such as if building safety regulations are not met, or counterfeit drugs are purchased, etc.
At number of studies have outlined the negative impact of diversion and embezzlement of funds. A 2008 report, for instance, showed how regions in Chad received only a third of allocated funds (U4 2008). Theft of drugs and medical supplies is another common problem (UNDP 2011a: 22). Additionally, an average of 5.59% of annual global health spending is lost to fraud (UNDP 2011a: 24).
At the delivery level, health personnel have an incentive to create inefficiencies and bottlenecks when they can extract bribes to expedite services.