All of a sudden! A large number of medical consumables were rejected, Medtronic, Johnson, Baxter …
Take it seriously! The lowest price for non-national real procurement, consumables are directly eliminated!
A large number of consumables cannot be purchased by public hospitals
On May 4, the Yunnan Provincial Centralized Drug Procurement Platform released the Announcement of Appeal and Challenge Results of Yunnan Medical Consumables Sunshine Procurement Audit in 2022 (hereinafter referred to as the Announcement).
According to the Announcement, a total of 934 medical supplies have not been approved after appeals. Enterprises can submit appeals to the provincial Medical Security Bureau again from May 5, 2023 to May 10, 2023. If the complaint is not passed, they will not be able to participate in the sunshine purchase of medical consumables in Yunnan Province, and their consumables will not be able to enter the public medical institutions in the province!
It is worth noting that the appeal failed to hang the net consumables involved a total of 115 machinery enterprises, including Medtronic, Johnson, Baxter, Covidien and other leading enterprises.
From the feedback that the appeal was not passed, it can be seen that the failure to truthfully declare or provide clear evidence to prove the lowest price for national procurement of consumables is the main reason for the large number of consumables being eliminated this time.
In addition, there are 21 consumable products that have been questioned for being the lowest price in the country due to complaints from peers, but the complaint was not approved due to insufficient evidence, Including Medtronic questioning Biotronik’s 6 implantable pacemakers, Boston Science’s 5 implantable left ventricular pacing lead wires; Terumo questioned six mechanical companies, including LivaNova, regarding membrane oxygenators.
As early as October last year, Yunnan Province announced the “2022 Yunnan Province Medical Consumables Sunshine Procurement and Partial Product Volume Procurement Application Announcement”, which opened the era of comprehensive linkage of Yunnan Province’s online medical consumables with the lowest prices in the country!
The document requires all medical consumables to enter the sunshine procurement in Yunnan Province must declare the lowest actual national procurement price on the national provincial platform. And clear supporting materials are required, otherwise all will not meet the requirements of hanging network!
| i The national lowest actual purchase price of the provincial procurement platform submitted by enterprise shall be converted into the lowest unit of use (unit of valuation) of the product, and the price shall be filled in accordance with the rounding principle with two decimal places reserved. The currency unit is Yuan (RMB). It is required that the pricing unit of the national lowest actual purchase price of the provincial procurement platform should be the same as the pricing unit of the price declared by the enterprise. | The declared specifications and models must be consistent with the specifications and models in the registration certificate. Under the same catalog, the specifications and models with the same registration certificate and the same price can be selected as all individual products and declared uniformly. Enterprises can submit price proof materials according to the registration certificate or the lowest actual purchase price of a single product (at least one specification and model) in the country. Ensure that the declared price of the enterprise is not higher than the national lowest actual purchase price of the provincial procurement platform (excluding the centralized purchase price organized by the state and provinces), only the online price without actual transaction records will not be declared;
If the source of the national lowest actual purchase price of the provincial procurement platform is Yunnan Province, the lowest actual purchase price shall be the price with actual transaction orders within six months before the announcement of declaration (screenshot of the order shall be provided). The lowest actual purchase price submitted by the enterprise shall be the price in effect as of the declaration date, and the province of the source of the price shall be checked. |
| ii .If the products participating in this Sunshine procurement do not have the bidding (online) price of the national provincial procurement platform, but are urgently needed medical consumables by medical institutions, the enterprise can provide its own quotation and online listing based on relevant proof materials issued by secondary or above public medical institutions in Yunnan Province, such as the procurement demand (which must indicate the procurement price and be stamped by the hospital and enterprise). The self-quotation shall not exceed the purchase demand issued by the medical institution and the purchase price specified in the purchase contract. | At the same time, the purchase demand issued by the medical institution and the purchase price in the purchase contract shall be filled in the declaration system. The price shall be filled in according to the minimum unit of use (pricing unit) of the product and shall be consistent with the pricing unit quoted by the enterprise (the lower price shall be filled in if the demand price is inconsistent with the contract price). |
Among the 934 consumable products that failed to pass this appeal, 744 were directly excluded due to “failing to declare the lowest actual purchase price on the provincial procurement platform”, and the rest failed to pass the examination because of not providing enough lowest price certification materials.
A
| Reasons for Failure to Pass the Audit | Quantity of Consumables Involved |
| Not declaring the lowest actual purchase price on the provincial procurement platform | 744 |
| There are no specifications models and prices in the purchase contract | 55 |
| The seal of the purchase demand and purchase contract shall be the department seal of the medical institution | 17 |
| The provincial screenshot source of proof materials for the lowest actual purchase price on the provincial procurement platform unknown | 15 |
| Failure to upload procurement requirements as required, and the procurement proof materials uploaded by the enterprise are contracts | 12 |
| Failure to submit the screenshot of the proof material of the lowest actual purchase price of the provincial procurement platform as required. | 11 |
| The record number is inconsistent with the proof materials for the lowest actual purchase price on the provincial procurement platform are. | 8 |
| The procurement request is not submitted, but the invitation letter and quotation project list is submitted; There are no specifications or models in the procurement contract, and the product name does not match the product name in the system. | 5 |
| The screenshot source province doesn‘t match the proof materials for the lowest actual purchase price on the provincial procurement platform. | 4 |
| The screenshot of the proof material of the lowest actual purchase price on the provincial procurement platform has no registration record number, and the specification display is incomplete. | 4 |
| Inconsistencies in the source provinces between the corporate declarations and the screenshots of the lowest actual purchase price supporting documents from the provincial procurement platform. | 2 |
| There is no corresponding specification or model in the purchase requirement and purchase contract. | 1 |
| Procurement requirements are not stamped with corporate fresh stamp. | 1 |
| There’s nor specifications or models for the proof materials screenshot of the lowest actual purchase price on the provincial procurement platform. | 1 |
|
There’s nor registration or record number for the proof materials screenshot of the lowest actual purchase price on the provincial procurement platform, the province source of the lowest actual procurement price filled by enterprise does n‘t match the screenshot on the provincial platform. |
1 |
| The price proof material·provided can‘t approve that enterprise declaration is lowest actual purchase price on the provincial procurement platform | 1 |
| The price proof material·provided can‘t approve that the price declared by enterprise is the lowest actual purchase price on the provincial procurement platform | 1 |
| The price proof material submitted can‘t approve that the price declared by enterprise is the lowest actual purchase price on the provincial procurement platform | 1 |
| Fail to upload the purchase requirements and purchase contract as required; Upload data as invoices and application forms; The application form does not bear the official seal of the hospital and the enterprise. | 1 |
| The province source of lowest actual transaction price proof material price is unknown；Enterprise declaration price is above the price of proof material. | 1 |
Taking the bone forming balloon with the serial number “2022133420” of Medtronic’s appeal as an example, it provided two reasons for the appeal, including “multiple provinces have no enterprise end hanging network consumables query port before, and the data connection between the new and old platforms is not timely”, indicating that the hanging network price declared by the enterprise is already the actual order purchase price on the platform that can be found by the enterprise.
But from the audit results, it can be seen that the appeal basis has not been approved, and the feedback reason is that “the lowest actual purchase price on the provincial procurement platform has not been declared”!
It can be seen that Yunnan Province has extremely strict requirements for applying for the lowest actual purchase price of sunshine procurement network consumables in various provinces across the country. Once there is an appeal with incomplete or untrue information, it will be eliminated directly!
Unified national real purchase lowest price! A large number of provinces have landed intensively.
At present, medical consumables procurement platforms in various provinces across the country have sparked a wave of online consumables rectification, with a large number of medical consumables being kicked out of online platforms and not eligible for procurement from local public hospitals.
Multiple provinces, including Hubei, Hebei, Shaanxi, Sichuan, etc., have adjusted the online prices of medical consumables through linkage comparison with the lowest prices in the country.
With the successful launch of the national drug consumables recruitment and procurement subsystem in 24 provinces, the unified platform of “bidding with code, purchasing with code and settlement with code” has promoted the accurate linkage price reduction era of medical consumables on the national scale.
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
Source：Medical device distributors Union
Translated & edited： Bradyknows
