Henan Province’s Medical Security Bureau has issued detailed guidelines for implementing the results of the tenth batch of national drug centralized procurement, alongside two additional procurement initiatives. The policies, effective from April 30, aim to reduce healthcare costs and ensure broader patient access to essential medicines.

Policy Breakdown

• Scope: Includes national-level procurement results, a traditional Chinese medicine (TCM) alliance, and a regional alliance for primary care medications.
• Implementation Timeline: Procurement cycles vary from one to two years, with annual contract renewals and provisions for extending cycles.
• Supply Mechanism: Backup suppliers are integrated into the procurement framework to ensure continuity, even if primary suppliers fall short.
• Pricing Rules: Clear guidelines for setting procurement prices, including benchmarks for non-primary suppliers and delisting criteria for non-compliant products.

Market Implications
The expanded procurement scope, including TCM and regional alliances, signals Henan’s push to rationalize drug pricing across categories. Analysts at Henan Healthcare Institute estimate a 15–20% reduction in procurement costs for participating institutions.

Industry Impact
Pharmaceutical companies must align with Henan’s pricing and supply frameworks to retain market access. The policy emphasizes annual performance reviews and penalties for non-compliance, raising stakes for contract fulfillment.

Looking Ahead
The April 30 implementation will test the province’s ability to balance cost reduction with supply stability. Stakeholders should monitor how backup supply mechanisms and price adjustments impact market dynamics.-China Health Reform Pulse

Policy Source: http://ylbz.henan.gov.cn/2025/04-08/3145778.html