Tag Archives: Price-volume procurement

Policy Analysis and Guidance: Guangdong Province’s Volume-Based Drug Procurement Initiative

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Guangdong Province’s Drug Exchange Center has issued a notice outlining the implementation details of the centralized volume-based procurement initiative for medications such as Apixaban tablets. This policy, effective from April 1, 2025, to December 31, 2025, aims to streamline drug procurement processes, enhance supply chain stability, and ensure quality assurance across healthcare institutions.

Key Policy Measures

  1. Tripartite Contract Signing
    • Process: Medical institutions must use CA certificates to log into Guangdong’s tender and procurement subsystem to initiate tripartite contracts. Detailed operational guidance is available on the official website.
    • Timeline: Contracts must be completed promptly after initiation by medical institutions, with drug manufacturers and distributors required to log in and finalize agreements without delay.
  2. Quality and Supply Responsibility
    • Accountability: Drug manufacturers are designated as the primary responsible parties for ensuring the quality and timely delivery of medications. They must guarantee coverage of all participating healthcare institutions across the province.
    • Compliance: Selected manufacturers must adhere to agreed-upon procurement volumes and ensure uninterrupted supply chains.
  3. Procurement Volume Negotiation
    • Flexibility: For designated social healthcare institutions, procurement volumes will be determined through negotiations between supply and demand parties, allowing for tailored agreements.

Policy Orientation and Industry Implications
This initiative reflects Guangdong’s strategic focus on:

  • Cost Efficiency: Reducing drug prices through centralized procurement while maintaining quality standards.
  • Supply Chain Integrity: Ensuring uninterrupted medication supply to healthcare facilities across the province.
  • Transparency: Promoting clear contractual agreements and accountability mechanisms.

Conclusion
Guangdong’s volume-based procurement framework sets a benchmark for regional drug management, emphasizing efficiency, quality, and accessibility. Stakeholders, including manufacturers, distributors, and healthcare providers, should align their operations with these guidelines to optimize compliance and patient outcomes.-China Health Reform Pulse

Policy Source: https://www.gdmede.com.cn/announcement/announcement/detail?id=1906642648857317376

Policy Analysis and Guidance: Kunming’s Third Batch of Provincial Alliance Drug Volume-Linked Procurement

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Kunming City has announced the results of its third batch of provincial alliance drug volume-linked procurement, with the selected drugs scheduled to be available for trading online starting April 1, 2025. This initiative aims to optimize drug procurement processes, reduce costs, and ensure the availability of quality medications through a volume-linked procurement mechanism.

Key Policy Highlights

  1. Online Trading Catalog
    • Details: The selected drugs for Kunming’s third batch of provincial alliance volume-linked procurement are detailed in Attachment 1.
    • Discontinuation: Previously selected drugs from the same manufacturer and formulation, as well as some products from the first batch of Kunming’s volume-linked procurement, will be discontinued after the new selected drugs are listed.
  2. Implementation Timeline
    • Effective Date: Medical institutions and insured retail pharmacies can procure the selected drugs through Yunnan Province’s Medical Security Information Platform starting April 1, 2025.
  3. Sample Registration
    • Filing Requirements: Drugs marked as “Requires Filing” in Attachment 1 must complete the basic drug notification and promise filing process.
    • Process: Relevant enterprises should complete filing with the Yunnan Provincial Drug Administration as per the displayed announcement and establish distribution relationships in the procurement system.
  4. Procurement and Distribution
    • Direct or Entrusted Delivery: Selected drugs can be delivered directly by the selected manufacturer or entrusted to a pharmaceutical distribution company.
    • Contract Signing: Medical institutions, manufacturers, and distributors must sign procurement contracts electronically in the procurement system starting now.
  5. System Access
    • Account Registration: Relevant enterprises should register for the procurement subsystem as per the 2024 notification.

Policy Orientation and Industry Implications
The implementation of Kunming’s third batch of volume-linked procurement reflects the city’s strategic focus on:

  • Cost Efficiency: Reducing drug prices through centralized procurement while maintaining quality standards.
  • Supply Stability: Ensuring the availability of essential medications through a reliable procurement mechanism.
  • Transparency: Promoting clear contractual agreements and accountability mechanisms.

Conclusion
Kunming’s volume-linked procurement framework sets a benchmark for regional drug management, emphasizing efficiency, quality, and accessibility. Stakeholders, including manufacturers, distributors, and healthcare providers, should align their operations with these guidelines to optimize compliance and patient outcomes.-China Health Reform Pulse

Policy Source: http://www.ynyyzb.com.cn/detail.html?infoId=25178&CatalogId=3