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The National Healthcare Security Bureau issued a document concerning the nationwide large-scale medical equipment procurement!

2024-06-28

Recently, the National Heathcare Security Bureau released a healthcare security update titled Breakthrough! Deepening the Pilot Expansion of Medical Service Price Reform is imminent, which clearly stated that provincial pilot projects will be directly carried out in three provinces including Inner Mongolia, Zhejiang, and Sichuan, and will continue to guide five pilot cities. It is expected that by around 2025, the reform experience will be promoted nationwide.

Undoubtedly, as China’s medical service price form continues to deepen, led by CT medical equipment and testing and inspection costs continue to go down, but also will force hospitals to further compress the purchase price, and even through the reduction of equipment purchases to cope with high-cost issues. And this, for medical equipment manufacturers, distributors, will inevitably lead to large medical equipment prices gradually lower.

The frequent large-scale medical equipment procurement in recent years is the best proof.

At the beginning of this year, Anhui Provincial Healthcare Security Bureau, Health Commission, and Drug Administration jointly issued a notice on adjusting the centralized procurement catalog of large-scale medical equipment in the province. The notice points out that all Class B equipment arranged outside the fiscal budget will be included in provincial centralized procurement.

In recent years, Fujian, Hainan, Sichuan, Beijing and other regions have also explored large-scale centralized procurement plans for medical equipment, and in some places, they have also begun to explore “characteristic procurement” for medical equipment.

For example, Yibin City has included all eight types of medical equipment, including color ultrasound, hemodialysis, beds, mirrors, anesthesia machines, suspension bridge towers, DR, CT, which are in high demand in public hospitals, in the volume based procurement, with an average decrease of 42%.

On April 30th, the Anyang Public Medical Institution Medical Equipment Centralized Procurement Consortium issued a notice on convening the second market research meeting for medical equipment, which clearly stated that a package bidding form will be adopted to centrally purchase a batch of medical equipment such as CT and MRI.

It is obvious that for dealers, the era of “making money by lying down” has passed, and the arrival of the era of one ticket system and centralized procurement has made us ponder whether the opportunities in the large equipment market have decreased? Not even worth it?

Actually, it’s not the case. This is just another opportunity! Under the premise of significant changes in the admission rules of large-scale medical equipment, the traditional customer relationship marketing model has suffered a heavy blow. Dealers must shift towards value based sales, otherwise they may be directly eliminated by the new market rules!

At the same time, driven by the 14th Five Year Plan, the country’s investment in new infrastructure medical service hardware equipment will gradually increase, and the large-scale medical equipment market is facing new opportunities. Therefore, successful transformation of dealer partners will receive more authorization and agency opportunities from major equipment manufacturers!

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 Dealers Alliance

Translated & edited: Bradyknow