Tag Archives: Price-volume procurement

Yunnan Launches Centralized Procurement for Biochemical Reagents

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

Yunnan Implements Centralized Procurement for Biochemical Reagents

KUNMING — Yunnan Province has initiated a centralized procurement program for biochemical reagents, specifically targeting products related to sugar metabolism and other biochemical tests. The policy aims to streamline the procurement process, reduce costs, and ensure the availability of high-quality medical reagents across the region.

Policy Breakdown

Centralized Procurement: The policy mandates that selected products from the “Sugar Metabolism and Biochemical Reagent Centralized Procurement List” will be available for purchase through Yunnan’s Medical Security Information Platform.
Implementation Timeline: The centralized procurement will take effect on June 5, 2025, with a procurement cycle of two years.
Distribution and Contracting: Selected companies will be required to establish distribution relationships through the platform, signing tripartite agreements annually to clarify rights and responsibilities.
Non-Selected Products: Products not included in the centralized procurement list will 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).

Industry Impact

Cost Reduction: The centralized procurement model is expected to drive down costs for biochemical reagents, benefiting both healthcare providers and patients.
Market Consolidation: Companies that fail to secure a place in the centralized procurement list may face challenges in market access, while selected companies will gain a competitive edge.
Quality Assurance: The policy emphasizes the importance of quality control, ensuring that only high-standard products 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 Government Procurement and Disposal Center.

Policy Source: http://www.ynyyzb.com.cn/detail.html?infoId=25515&CatalogId=3

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

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

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.
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.
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