About online centralized procurement of drugs

The State Council's Rectification Office has announced the full implementation of a government-led approach to centralized online procurement of medicines at the provincial (autonomous region, and municipal) level. According to a report from the Chinese government website on the 10th, the State Council has taken further steps to rectify issues in the medical sector, as outlined in the recently issued "Opinions." The document emphasizes the need to accelerate the transition toward a fully digital, government-managed drug procurement system across all provinces, aiming to enhance transparency and efficiency. The guidance also stresses the importance of addressing unhealthy practices in medicine procurement, sales, and medical services. Relevant authorities are urged to implement healthcare reform measures effectively, including expanding basic medical insurance coverage for urban employees, residents, and rural populations, while improving the settlement mechanisms for medical insurance to make healthcare More accessible. The government plans to establish a regulatory platform and a non-profit procurement platform to oversee the entire process of centralized drug procurement. It will also work to standardize the procurement of medical devices and strengthen price controls. A gradual reform of the "medicine-funded treatment" model is being considered, with a focus on improving the funding mechanisms for hospitals. In addition, the Opinions call for enhanced supervision over pharmaceutical production and distribution, continued efforts to eliminate commercial bribery in the medical supply chain, and the development of behavioral guidelines for pharmaceutical representatives. A record-keeping system for misconduct is also proposed. The policy encourages the centralized procurement and unified distribution of essential drugs in both urban and rural health institutions, aiming to reform the operation of primary care facilities and explore a zero-margin pricing model for community-based drug supply. Furthermore, the guidance highlights the need to regulate medical device registration, strengthen oversight of manufacturers, conduct quality inspections, and improve the daily management of distributors. It also promotes hospital transparency, establishes ethical evaluation systems for medical staff, and sets rules for punishing violations within the healthcare sector. Efforts are also underway to strengthen oversight of private healthcare institutions and ensure that public hospitals adhere to strict ethical standards. Large hospitals will be inspected regularly, and any unjustified price hikes or additional charges will be strictly addressed. False and illegal medical advertisements will be cracked down on, and new measures will be developed to enhance the supervision of private healthcare providers. It is worth noting that in 2007, the National Development and Reform Commission (NDRC) reduced the prices of 726 types of medicines in three batches, as part of a broader campaign led by the Central Commission for Discipline Inspection. This initiative resulted in an average price reduction of 20%, saving approximately 10 billion yuan.

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