By the end of 2023, the cumulative number of drugs under centralized procurement in each province will reach 450, each province will carry out at least one batch of provincial-level consumables procurement, and the pilot reform of medical service pricing will be deepened... The National Healthcare Security Administration issued the "Notice on Effectively Carrying out Centralized Drug and Consumables Procurement and Price Management in 2023" on the 1st, outlining the key tasks for pharmaceutical centralized procurement in 2023.

By the end of 2023, the cumulative number of drugs under centralized procurement in each province will reach 450

The notice clearly states the intention to continue expanding the coverage of drug centralized procurement. By the end of 2023, the cumulative number of drugs included in national and provincial centralized procurement in each province will reach 450, of which provincial-level procurement should cover 130 drugs, including chemical drugs, traditional Chinese medicines, and biological products.

To date, the state has organized 294 drugs for centralized procurement, with a batch of commonly used drugs for outpatient and chronic diseases such as hypertension, coronary heart disease, and diabetes seeing an average price reduction of over 50%. Thanks to significant price cuts, the proportion of patients using high-quality drugs has increased from 50% before centralized procurement to over 90%.

Recently, the National Joint Office for Drug Centralized Procurement issued the "Notice on Carrying out Information Filing for the Eighth Batch of Nationally Organized Drug Centralized Procurement," officially launching the information filing for the eighth batch, involving about 40 drugs covering areas such as anti-infection and cardiovascular and cerebrovascular treatments.

Regarding the standardized renewal of contracts for nationally organized centralized procurement drugs after the agreement period, the notice specifies that products with higher winning prices from the previous round should continue to have price markdowns. For products with lower winning prices from the previous round where market conditions have changed, new winning prices will be formed through full competition.

Additionally, the notice specifies key guidance: Hubei will lead the expansion of varieties and regional scope for the inter-provincial alliance of traditional Chinese medicines; Jiangxi will lead the inter-provincial alliance procurement of interferons; and Guangdong will lead the inter-provincial alliance procurement of drugs prone to shortages and used for emergency resuscitation.

Continue to carry out new batches of nationally organized high-value medical consumables centralized procurement

In September 2022, the third batch of nationally organized high-value medical consumables centralized procurement focused on spinal orthopedic consumables, with selected products averaging an 84% price reduction.

The notice stipulates that the implementation of the centralized procurement results for spinal consumables should be ensured. Referring to the special adjustment practice for artificial joint replacement surgery prices, priority should be given to adjusting surgery prices related to spinal consumables procurement.

Furthermore, focusing on key products in cardiology and orthopedics, more provinces will be guided to promote centralized procurement of general surgery consumables like staplers and ultrasonic scalpels. The exploration of in-vitro diagnostic reagent centralized procurement will continue, with each province carrying out at least one batch of provincial-level consumables procurement. Key guidance will be provided: Shaanxi will lead the inter-provincial alliance procurement of dural (spinal) membrane patches and hernia repair consumables; Henan will lead the inter-provincial alliance procurement of neurosurgery consumables; and Anhui will lead the inter-provincial alliance procurement of in-vitro diagnostic reagents.

In January 2023, the centralized procurement for dental implant systems opened in Sichuan, with the average winning price for selected products dropping to over RMB 900. Nearly 18,000 medical institutions participated, with a procurement demand reaching 2.87 million sets.

Regarding the continued special governance of dental implant prices, the notice requires the implementation of the implant system procurement results and guides medical institutions to prioritize the procurement and use of selected products. The Sichuan Medical Insurance Bureau will take the lead in conducting price listing and hanging for dental crowns, with other provinces promptly following Sichuan's listed prices. All provinces should fully implement the whole-process control targets by mid-April.

Strengthen Supply Assurance for Selected Products and Advance Medical Service Price Reform

The supply assurance of drugs and consumables after price reduction due to centralized procurement has always been a public concern.

In this regard, the notice specifies the need to strengthen supply assurance for selected products, establish an effective feedback mechanism between medical institutions, production and distribution companies, and centralized procurement agencies regarding the supply of procured varieties. This aims to enhance responsiveness to supply and distribution issues, promptly taking measures such as increasing supply allocation and arranging substitutes. Companies failing to meet supply requirements will face corresponding levels of credit evaluation based on the circumstances.

In advancing medical service price reform and management, the notice specifies that the five national pilot cities—Tangshan, Suzhou, Xiamen, Ganzhou, and Leshan—should monitor the implementation of the first round of price adjustments and continuously improve the price formation mechanism.

Simultaneously, the management of listed drug prices should be strengthened. The notice requires proper listing of drugs from the new national reimbursement list that are part of negotiations or competitive bidding, along with enhanced routine monitoring and dynamic management. The listing and delisting of drugs should be standardized to prevent disguised price increases, such as changing the marketing authorization holder or altering specifications and packaging.

Additionally, the notice clarifies that for cases of abnormally high price increases, prices that are generally high, or significantly above the national low price, provinces should promptly initiate inquiries and reminders to rectify improper pricing behaviors.