34.6 billion! News from the Ministry of Finance, related to equipment procurement

While the new medical infrastructure continues to heat up, it also presents new features. With the increasing importance of graded diagnosis and treatment, the huge potential of county medical device market has been gradually tapped.

01. 18.9 billion, covering all public hospitals

Recently, the Ministry of Finance issued the Notice of the Ministry of Finance, the National Health Commission and the State Administration of Traditional Chinese Medicine on Issuing the 2023 Subsidy Budget for Improving the Medical Service and Security Capability (Comprehensive Reform of Public Hospitals) in Advance, and the Notice of the Ministry of Finance and the National Health Commission on Issuing the 2023 Subsidy Budget for Improving the Medical Service and Security Capability (Capacity Building of Medical and Health Institutions) in Advance， Notice of the Ministry of Finance, the State Health Commission, the State Administration of Traditional Chinese Medicine and the State Disease Control Bureau on Issuing the 2023 Subsidy Budget for Improving the Medical Service and Security Ability (Health and Health Talent Training) in Advance, and Notice of the Ministry of Finance, the State Health Commission and the State Disease Control Bureau on Issuing the 2023 Major Infectious Diseases Prevention and Control Budget in Advance, and other documents.

Among them, 8 billion yuan is allocated in advance to promote the comprehensive reform of public hospitals in 2023, which is basically the same as last year. Five billion yuan will be allocated as subsidies for the comprehensive reform of public hospitals, and three billion yuan for the demonstration projects for the reform and high-quality development of public hospitals.

More than 3.985 billion yuan in subsidies for improving the capacity of medical services and security (capacity building of medical and health institutions) in 2023 has been allocated in advance to improve the capacity building and service level of medical and health institutions. This is down from the 4.842 billion yuan allocated in advance last year.

More than 6.998 billion yuan in subsidies for improving medical service and security capabilities (training health professionals) in 2023 has been allocated in advance to support the training of health professionals. It is also lower than last year s 7.626 billion won.

The above three subsidies totaled more than 18.9 billion yuan.

02. 15.6 billion yuan for the prevention and control of major infectious diseases

The Ministry of Finance also released the budget for the prevention and control of major infectious diseases on the same day.

Specifically, more than 15.64 billion yuan has been allocated in advance for the prevention and control of major infectious diseases in 2023, mainly for the expansion of the national immunization program, AIDS prevention and control, tuberculosis prevention and control, schistosomiasis and hydatid disease prevention and control, mental health and chronic non-communicable diseases prevention and control, and monitoring of major infectious diseases and health risk factors.

According to the Measures for the Management of Subsidies for the Prevention and Control of Major Infectious Diseases released in 2019, the funds for the prevention and control of major infectious diseases are mainly used for drug treatment and other subsidies to needy parties, follow-up management of medical and health institutions, capacity building of laboratories and equipment allocation, and expenditure required for related work.

In other words, some of the money will be used for equipment allocation.

In 2020, more than 10.796 billion yuan was allocated in advance; in 2021, more than 11.924 billion yuan was allocated in advance; and in 2022, more than 15.572 billion yuan was allocated in advance.

In the past two years, funding for the prevention and control of major infectious diseases has increased.

The funds allocated in advance for 2023 are basically the same as last year. However, the funding for “monitoring of key infectious diseases and health risk factors” has reached more than 1.8 billion yuan, which is a significant increase compared with the previous year’s funding of more than 500 million yuan for “detection of COVID-19 and other key infectious diseases”.

03. New medical infrastructure will continue to increase in 2023

In the second half of this year, central infrastructure investment budget funds in the field of health have been issued one after another. In addition, the policy on the renewal and transformation of medical equipment with financial discount loans has been introduced, and the medical market is heating up rapidly.

In October, the Ministry of Finance released a central budget of 26.521 billion yuan for infrastructure investment in the health sector in 2022, according to its official wechat account. The projects involved include the construction, expansion and relocation projects of disease control and prevention centers, regional medical centers, and medical institutions at all levels, capacity improvement projects and medical equipment purchase projects, etc.

In the Notice on the third batch of Central Government infrastructure Investment Budget for 2022 in the health sector, it stressed the need to expand the achievements of public health prevention, control and treatment, strengthen the construction of quarantine and treatment facilities for large-scale epidemics, accelerate the expansion of quality medical resources and the balanced distribution among regions, ensure the health of key populations in all aspects, and promote the inheritance and innovative development of traditional Chinese medicine.

The demand for high-end medical equipment in large first-class hospitals is still there. In addition, the importance of hierarchical diagnosis and treatment continues to rise, and the county medical market is increasingly hot.

In September this year, the state identified special refinancing loans with financial subsidies to support the renewal of equipment in some areas. Experts predict that nationwide loan demand for medical equipment will be about 200 billion yuan.

It is obvious that the new hospital infrastructure in 2023 will expand to a larger and deeper scope, and a new wave of medical equipment procurement is coming.

China is encouraging China end uses for more domestic products in latest years. Thus, more and more overseas manufacturers are planning localization in China. BradyKnows localization team has extensive experiences in facility establishment, audit, supplier evaluation, manufacturing, registration, and marketing in China. Pls feel free to let us know any questions on China entry via info@bradyknowsmedical.com

By Dong Tai，Saibolan Instrument

Translated & edited by Bradyknows