In a recent announcement, the National Healthcare Security Administration of China revealed that the country will initiate its 11th round of a centralized bulk-buy program. This requires medical institutions to provide detailed information on their procurement volumes for an upcoming large-scale purchasing initiative that focuses on reducing drug prices, particularly for generic medications.
This iteration of the program includes a total of 55 types of medicines, with a significant change allowing institutions to indicate specific brands they wish to procure. This adjustment is designed to promote involvement from established manufacturers and ensure that well-recognized products are made available.
Furthermore, institutions have been directed to estimate their annual demand for each medicine at a minimum of 80% of their average usage for the years 2023 and 2024. However, should there be an anticipated decrease in usage for reasons like reduced clinical demand, institutions are permitted to submit actual demand figures accompanied by a written explanation. Additionally, the administration has indicated it will provide some policy flexibility regarding essential medications and those for pediatric use, which are critical for healthcare providers. Medical institutions are expected to complete their submissions by August 25.
5 Comments
Africa
Lower drug prices sound good, but are they sacrificing quality for affordability? Generic drugs aren't always the best option.
Habibi
80% seems like a reasonable starting point, that the administration will be flexible makes this more appealing.
Leonardo
This is progress towards making healthcare more patient-centered. It addresses a key problem with medicines.
Michelangelo
What about the smaller, newer drug companies? This program might stifle competition and innovation.
Raphael
This will alleviate some of the financial burden of healthcare for millions. Well done!