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11 urban drugs centralized public procurement proposed results of the drug price selection on average 52% decline –

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December 09, 2018 06:29 Source: Hospodářský denník Take part in the interaction

11 municipal drugs centralized public procurement proposed election results
Prices of medicines have fallen by an average of 52%

Beijing, December 8, reporter Wu Jiajia reported: The National Health Insurance Bureau said 8th that the national organization of centralized drug procurement pilot work continued smoothly, and the results of the "4 + 7" urban drug centralized stock plan were announced on 7th, 31st Pilot Generic medicines have 25 centralized procurement plans. Compared to the minimum purchase price of the same drug in the pilot city in 2017, the average price of the proposed price dropped by 52%, with the highest drop of 96%.

It is clear that centralized procurement for this round of drugs is based on a public procurement procurement, which is based on public health institutions in Beijing, Tianjin, Shanghai, Chongqing and Shenzhen, Dalian, Xiamen, Shanghai, Chengdu and Xi'an. The Joint Procurement Authority collected scattered drug purchases in public hospitals in 11 pilot cities and created a large buying effect in the group. The procurement notice fixed the purchase amount of each variety and the manufacturers of medicinal products clearly expected to benefit from public procurement. An independent quotation statement removes the "gold sales" phenomenon, it is beneficial to change the price quantitatively, significantly reduce the cost of medicines and effectively reduce the burden of charges for medicines for patients, it is beneficial to reduce the interregional marketing costs of businesses. At the same time, this centralized public procurement pilot project provides an opportunity for fair competition between generic medicines and original research drugs through a cohesion assessment, which contributes to strengthening competition and promoting gene substitution.

The person in charge of the joint acquisition of the Office emphasized that pharmaceutical companies attach great importance to this centralized procurement, and that all eligible businesses reflecting the enthusiasm of businesses involved in a national pilot work on centralized drug purchases are involved in the declaration. Finally, there were 25 centralized generic medicines for 31 pilot generic drugs with 81% success. Among them: 22 generic medicines have undergone a consistency assessment, representing 88% and 3 original medicines, representing 12% and the substitution effect of generic medicines. Compared to the minimum purchase price of the same drug in the pilot city in 2017, the average price of the proposed price dropped by 52%, with the highest drop of 96%. After the advertising period ends, the company will determine and publish the results of the election. The Pilot Office will manage and promote pilot programs and support policies for pilot cities, meet the supply results and realize the benefits of the masses.

Why is there a sharp drop in the price of a selected drug? Will sharp price cuts have a negative impact on drug manufacturers? The person in charge of the joint acquisitions of the Office pointed out that the overall decline in the price of a drug selected for the central purchasing of medicines in the country was in line with expectations, demonstrating the strength of public procurement in alliances and quantities. Masses can get high-quality, low-priced drugs, and manufacturing businesses can also save transaction costs and focus on research and development to get quality. "The high price of drugs is a prominent issue in the medical field in China, according to survey data from the authoritative department, there is only a small part of the cost of manufacturing and a reasonable profit for the manufacturing company in the sales price, so the price of the drug to be selected is planned. the main reason for compression of "moisture", such as sales costs, and drug manufacturers can still make money. "The responsible person informed about whether he participates in" centralized 4 + 7 procurement "and purchase offers are based on the business. The situation of production and operation is determined by itself. Obviously, selected companies are willing to reduce the price by price.

The person in charge of the joint procurement office also stated that the price of the selected drug had fallen sharply. For pharmaceutical companies, the current non-profit and long-term benefits are good. First, the volume of purchases significantly reduced the cost of drug entry into the hospital. Secondly, the promise of early repayment reduces company spending and financing costs. Thirdly, buying alliances significantly reduces their marketing costs. Fourthly, in order to change the market price, the unit cost of production of the drug decreases by the scale. These factors can ensure the impact of drug prices and bring tangible benefits to selected companies. An extensive public procurement model supported by a national centralized drug purchasing organization releases pharmaceutical manufacturers from incoherent "gold sales" competition, leading them to shift their efforts to improve drug quality and promote the right track of drug research and development. This has a far-reaching meaning for the healthy development of the Chinese pharmaceutical industry.

In addition, the person in charge of the pilot office said that securing drug selection to hospital and gaining priority use is key to the success of a national organization of centralized drug pilots. The next step is to include drug use in the management of health insurance contracts and to clarify liability for a breach of contract and how to deal with them. The second is the introduction of a payment standard policy. Clarify health insurance for drugs with the same common name and different commodity names, operating rules and transitional insurance obligations paid under the same payment standard, and lead the insured to rational use of drugs. The third is to strengthen the monitoring and control of the purchase of selected and unselected drugs and to find measures to resolve the abnormal situation in time. Fourthly, hospitals that reduce health insurance fund spending due to the use of selected varieties in the standard. When the total amount of the health insurance budget is not reduced, the balance is reserved to the hospital in proportion to supporting the reform of the hospital's distribution system and mobilizing the enthusiasm of the medical staff. The fifth objective is to develop and improve the health insurance assessment system and the assessment of health institutions, and to include the use of selected medicinal products in the health insurance assessment and evaluation system and to develop appropriate remuneration and penalties systems.

Wu Jiajia

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