KUNMING — Yunnan Province has introduced a centralized procurement policy for biochemical reagents, including those for sugar metabolism tests, aimed at optimizing the supply chain and reducing costs for healthcare providers. The policy, which takes effect on June 5, 2025, will be implemented over a two-year cycle, with the potential for a one-year extension.

Policy Breakdown

• Procurement Entities: The policy covers public medical institutions, including military hospitals and private institutions designated by the medical insurance system. Other healthcare providers are also encouraged to participate.
• Product Scope: The centralized procurement will focus on reagents listed in the “Sugar Metabolism and Biochemical Reagent Centralized Procurement List” (available in the appendix).
• Execution Timeline: The procurement cycle will last for two years, with annual agreements signed between medical institutions, manufacturers, and distributors.
• Agreement Volumes: The agreed-upon procurement volumes will be determined through the Jiangxi Province Medical Security Information Platform and imported into Yunnan’s Medical Security Information Platform.
• Implementation Requirements:
• Priority for Selected Products: Medical institutions are required to prioritize the use of selected products while ensuring the completion of agreed procurement volumes.
• Supply and Distribution: Selected manufacturers must ensure product quality and supply, partnering with reliable distributors to meet the needs of medical institutions.
• Non-Selected Products: Products not included in the centralized procurement list must follow the dynamic pricing and listing requirements outlined in the “Yunnan Province Medicines and Medical Consumables Dynamic Listing Plan” (Yun Medical Insurance [2022] No. 92).
• Regulatory Oversight: The medical insurance department will collaborate with other regulatory bodies to monitor the procurement and use of selected products, taking punitive measures against non-compliant manufacturers and distributors.

Industry Impact

• Cost Efficiency: Centralized procurement is expected to reduce costs for medical institutions, ultimately benefiting patients through lower healthcare expenses.
• Market Consolidation: The policy may lead to market consolidation, with selected manufacturers gaining a competitive edge. Non-selected companies may face challenges in market access.
• Quality Assurance: The emphasis on quality control and regulatory oversight ensures that only high-quality reagents are procured through the centralized system.

Looking Ahead
Stakeholders, including reagent manufacturers and healthcare providers, should closely monitor the implementation of the centralized procurement policy. The long-term goal is to enhance the efficiency and transparency of the procurement process while maintaining high standards of medical supplies.-China Health Reform Pulse

For detailed implementation guidelines and the full procurement list, refer to the official announcements from the Yunnan Provincial Medical Security Bureau.

Policy Source: http://www.ynyyzb.com.cn/detail.html?infoId=25514&CatalogId=3