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Official emergency notice, a large number of consumables will be discontinued! Medtronic, Johnson & Johnson, Abbott…

2024-03-29

On March 20, Liaoning Provincial Pharmaceutical and Medical consumables Centralized Procurement Network issued the  Notice on Starting the First Batch of Liaoning Provincial Medical Consumables Procurement Product Price Control Work” (hereinafter referred to as the “Notice“).

It is understood that the first batch of price control consumables mainly targets  duplicate products with the same 27-bit national healthcare security medical consumables code, registration certificate, online procurement price, and bidding enterprise account.

The scope of the management products involved in the project includes: non- quantity carried products and non-selected project (Excluding products purchased with quantity and reagent products).

The Notice points out that after price control, various types of consumables for enterprises will only retain one number information, and the specific rules are as follows:

 

  • Duplicate products retain the final product code according to the size of the purchase volume;
  • In case of the same procurement volume, the product code with the first online time is preferred;
  • Priority is given to the smallest product code with the same online time.

 

According to the above principles, the first round of price governance for online medical consumables  involve 58515 products from 506 enterprises, and 27619 products will be ultimately retained. Top mechanical companies such as Medtronic, Stryker, Abbott, and Johnson&Johnson all have a large number of products among them.

Among them, a total of 2,544 consumables from Johnson & Johnson will be removed, 67 from Medtronic, 128 from Stryker, 41 from Abbott, and 2,658 from Double….

The deadline for this information disclosure and appeal will expire on March 29, 2024, which is tomorrow. Each enterprise’s business must carefully verify the product and price information involved to avoid hindering the normal online procurement process of the product.

As is well known, when the consumables information in various provinces has not yet been integrated into the national unified platform, various consumables chaos often occurs due to the complexity of consumables classification, inconsistent names, and unclear classification standards.

However, after the provinces have been connected to the national unified healthcare security information system, the phenomenon of chaotic management of consumables has finally been significantly improved.

In Anhui Province, for example, half a year after the new system was launched, more than 100000 consumables were scheduled to be canceled online due to code matching errors.

According to a rough estimate, throughout 2023, nearly millions of consumable products were disqualified because of “repeatedly taking the code, decomposing the code”.
The notice also makes it clear that this price governance action will be launched in batches.

This also means that the purge has only just begun.

According to incomplete statistics, more than 20 provinces in China have launched the Healthcare Security Platform Procurement Management System” In the past 2023, multiple provinces including Fujian, Jiangxi, Sichuan, Shaanxi, Hebei, and Guangdong have issued intensive documents:
All online medical consumables “to carry out the sharing of online medical consumables products linked to the lowest price of the national provincial network”, the full use of the National Consumables Procurement Subsystem, to improve the rate of network procurement.

Enterprises are required to truthfully declare the lowest price for nationwide provincial-level online listing. After comprehensive comparison of data from the national procurement subsystem, if there are false declarations, the online listing will be revoked and even subject to disciplinary action for dishonesty.
During this period, a large number of consumable products that did not reduce prices in a timely manner, did not participate in centralized procurement, and did not deliver in a timely manner were disqualified from being listed on the internet.

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 Alliance

Translated & edited: Bradyknow