NHSA Investigates Concerns Over Efficacy of Government-Procured Medicines

The National Healthcare Security Administration (NHSA) of China has announced its intentions to send a team to Shanghai to address growing concerns related to the effectiveness of specific medicines acquired through government procurement. This investigation was prompted during the 2025 "Two Sessions," where policymakers and medical experts from Shanghai and Beijing highlighted the varying efficacy of drugs purchased via the centralized procurement scheme initiated by the NHSA in 2018.

The centralized drug procurement program, designed to lower medication costs significantly, has managed to save approximately 630 billion yuan (about $86 billion) since its inception. However, during the same timeframe, expenditures on innovative medicines included in national health insurance negotiations have reportedly risen by about 520 billion yuan, according to a CCTV report. In light of these figures, the NHSA is taking the initiative to investigate any potential quality risks associated with the drugs it has procured, requesting a meeting with relevant experts in Shanghai to discuss these pressing issues.

In response to concerns raised by medical professionals, including a proposal from Zheng Minhua, a prominent surgeon from Shanghai's Ruijin Hospital, the NHSA has stressed the need to collect robust clinical data demonstrating the efficacy of the medicines in question. This proposal, supported by 19 medical experts, cautioned that while the procurement program has alleviated some financial burdens, the quality of medications may be compromised due to aggressive pricing. These experts have noted that certain medicines, especially antibiotics and anesthetics, have shown inconsistent results in clinical settings, with some patients experiencing adverse therapeutic outcomes.

There’s a prevailing worry among healthcare professionals that excessively low prices may tempt some companies to compromise on manufacturing quality. Dr. Lu Changlin, a cardiologist from Beijing Chaoyang Hospital, also shared concerns similar to those raised in Shanghai, asserting that the efficacy of procured drugs frequently falls short when compared to their original, imported counterparts.

To improve the centralized procurement process, suggestions have been made to allow patients to choose original drugs and adjust reimbursement ratios based on the type of drug, whether it is branded or generic. Additionally, considerations regarding the pharmaceutical companies’ reputation should be taken into account when selecting products during the procurement process. The NHSA has encouraged health professionals to report any discrepancies regarding drug efficacy to facilitate timely investigations and address potential issues more effectively.