Healthcare

Drastic Reduction in Hip Replacement Costs Thanks to Bulk Procurement in China

Main image to the post Drastic Reduction in Hip Replacement Costs Thanks to Bulk Procurement in China

In 2014, orthopedic surgeon Yang Kaixiang began working in a Wuhan hospital and encountered a patient whose severe osteoporosis remained untreated due to the high costs of medical care. The woman, a migrant worker from Guangzhou, revealed that it would take her ten years of frugal living to save enough for a hip replacement, prompting Yang to empathize with the pain she endured.

Historically, the prohibitive expenses associated with joint replacement surgery led many patients to delay critical health interventions, putting them at risk for chronic pain and disability. Surgical procedures for replacing damaged joints and hips could reach costs of approximately 50,000 yuan (around $6,800).

Fortunately, a change came with the introduction of a bulk procurement program by the National Healthcare Security Administration, designed to lower the costs of surgeries and medical supplies through negotiated pricing with manufacturers. Initiated in 2018 and expanded in 2021 to include artificial joints, this program came in response to the growing need for replacement surgeries due to an aging population facing conditions like osteoarthritis.

As a result of the bulk buy initiative, prices for artificial knees decreased from 32,000 yuan to just 5,000 yuan, and artificial hips from 35,000 yuan to 7,000 yuan. Following significant price reductions implemented in April 2022, over 1.1 million products have been utilized, ultimately saving patients nearly 33 billion yuan in medical expenses.

Wuhan resident Zhang Zhongliang recently underwent a right hip replacement and shared his positive experience after checking out of the hospital three months post-surgery. He expressed enthusiasm about his quick recovery, explaining how he was able to walk again just a day after the surgery and return to his daily activities within a month. Zhang noted that his total medical bill was approximately 15,000 yuan for the procedure, significantly less than the 100,000 yuan his friend had to pay for a similar operation some years ago.

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May 21, 2023 | 05:09