Topic: Key Points of the 11th National Drug Procurement Volume Submission
National bulk drug procurement relies on accurate volume submissions as its foundation.
The demand submission process for the 11th centralized drug procurement has recently begun. The reasonableness of medical institutions’ reported demand directly impacts the effectiveness of the procurement. What are the new changes in this year’s volume submission? The National Healthcare Security Administration released a policy interpretation on the 7th.
— New option to submit volumes by drug manufacturer.
In previous centralized procurements, medical institutions primarily reported demand by generic drug name without specifying manufacturers. To meet diverse medication needs, this procurement has optimized the reporting rules by adding an option to submit volumes by preferred manufacturer. This respects clinical preferences while addressing patients’ brand concerns, aligning with real-world medical needs.
Note: If a medical institution’s reported manufacturer wins the bid, that manufacturer directly becomes the supplier and must fulfill the agreed procurement volume. If the reported manufacturer doesn’t win, the corresponding demand will be supplied by the primary supplier in that province.
This procurement covers 55 drug varieties across therapeutic areas including anti-infectives, anti-tumor drugs, anti-allergy medications, diabetes treatments, and cardiovascular drugs. Previously, 480 companies submitted information for relevant drugs, averaging 15 companies per product. These companies will form the selection pool for medical institutions’ volume submissions.
— Allowance for volume reductions in special circumstances.
How do medical institutions determine demand volumes? This procurement generally requires each institution’s annual demand for each product to be no less than 80% of their average 2023-2024 usage.
However, the policy clearly defines exceptions. For instance, if clinical demand decreases significantly due to reduced need or operational adjustments, institutions may submit adjusted volumes with written justification.
Some institutions might have temporary purchases causing discrepancies between historical procurement and actual demand. In such cases, institutions may reduce their submission below the 80% average procurement level while providing supporting documentation.
The policy also encourages participation from private healthcare institutions and retail pharmacies to improve patient access to procured medications.
— “Priority use” doesn’t mean exclusive use.
Notably, while procurement policies require prioritized use of winning bids, “priority” doesn’t equate to “exclusive use.” Procured volumes typically represent 60-80% of reported demand, with remaining volumes allowing flexibility to purchase either winning or non-winning bids.
To avoid rigid implementation, optimized measures address special cases. For nationally or provincially monitored drugs, or those with significant demand changes due to public health events or clinical guideline updates, fulfillment requirements may be adjusted based on regional usage standards, respecting actual clinical needs.
Since 2018, ten national drug procurement rounds have covered 435 medications. Continuously refined procurement rules serve as guidance—reducing costs for established medications while creating fiscal space for new drug coverage. Seven national reimbursement list updates have incorporated 530 new drugs, improving medication quality and accessibility.
“Stabilizing clinical use, ensuring quality, preventing bid-rigging, and avoiding unhealthy competition.” The National Healthcare Security Administration advises companies to carefully assess costs and market competition, maintain rational pricing and ethical operations, and collectively resist illegal practices like bid collusion.
