The Healthcare Security Administration issued a document to comprehensively regulate default payments by public hospitals!

The centralized procurement consumables was not paid back and the batch of hospitals was investigated

On April 7th, Guangxi Healthcare Security Administration released an article titled  Intensify Efforts to Governance centralized Procurement Debts to Help Optimize the Business Environment. The article points out that on March 16th, a company reported that some medical institutions in our region have been in long-term arrears of payment for centralized procurement of ultrasonic knives.

After receiving feedback, the Healthcare Security Administration of the autonomous region quickly organized the healthcare security departments and designated medical institutions throughout the region to sort out the outstanding payment situation for this item.

The survey found that a total of 22 medical institutions in the region had not received payment for the centralised ultrasonic scalpel purchase for more than six months, amounting to a total of 6.0127 million yuan. Of these, 10 medical institutions had not received payment for more than one year, totalling 5.1802 million yuan

For designated medical institutions with problems, the healthcare security departments of each city shall promptly supervise them to complete rectification within one week.

Large scale arrears of payments from tertiary to grassroots hospitals for equipment enterprises

On March 18th, the Audit Bureau of Jinhua City issued a Notice on the Results of the Special Audit Investigation on the Reform of Medical Ccare, Healthcare Ssecurity, and Pharmaceutical Linkage at the local level in Jinhua City. During the special audit investigation from June to August 2023, it was found that some hospitals in the city were found to have been in arrears of drug and consumables payments for more than 6 months.

However, six months’ and one year’s arrears are often only at the “entry” level.

The situation of untimely payment back is common in hospitals ranging from large tertiary institutions to primary hospitals, and it involves payments for medicines, consumables, equipment and other goods. Clearing the arrears of hospitals and easing the pressure on SMEs has become a top priority!

Multiple provinces are taking action! Clearing up outstanding debts of small and medium-sized enterprises

 In recent times, from the country to local governments, there has been an emphasis on clearing outstanding corporate accounts.

Last month, the 2024 Government Work Report was issued, which proposed to improve the long-term mechanism for preventing and resolving outstanding corporate accounts, and carry out a special action to clean up outstanding corporate accounts.

At the local level, taking Guangxi as an example, on February 6th, the Several Measures to Promote High Quality Development of Private Economy in Guangxi” as officially introduced, which clearly requires increasing efforts to prevent and clean up overdue accounts on a regular basis:

Cleaning up issues such as non-repayment of accounts, non-fulfilment of policies, non-fulfilment of agreements, non-fulfilment of judgements, etc., gradually resolving the stock, effectively curbing the increment, and real-time sharing of information on defaults and breaches of trust identified in accordance with the unified national standard to the national platform for the sharing of credit information (in Guangxi), and uniformly including it in the names of the relevant subjects to form a credit record for governmental affairs.

Increasing efforts to resolve outstanding accounts owed to private enterprises. Private enterprises shall be compensated in accordance with the law for losses suffered as a result of changes in government commitments and contractual agreements that are required in the national interest, the public interest or for other legal reasons.

Not only Guangxi, the current nationwide has been a number of provinces intensively issued a document, announced that in 2024 the full set off of payment arrears remediation. And the inclusion of loss of discipline, collection of reporting clues, audits and other means are frequently mentioned.

Obviously, 2024 a top-down, radiating the country’s accounts inventory has begun to fully land! Under the “real means” used by departments around the country, the problem of delinquent payments by medical institutions is bound to be more thoroughly remedied.

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