Govt asks medical bodies to submit procurement volume for bulk-buy program

China has begun asking medical institutions to submit procurement volume in preparation for the nation's 11th round of centralized bulk-buy program, according to a statement released by the National Healthcare Security Administration on Thursday.

Under the program, drugmakers reduce prices of medical products — with the majority being generic drugs — and bid for large-volume contracts at public hospitals. The latest round will cover 55 types of medicines.

One highlight of the latest program is that medical institutions can specify particular brands when reporting demand, a move aimed at encouraging participation from well-recognized manufacturers.

The administration added that medical institutions should report an annual demand for each product that is no less than 80 percent of its average annual usage in 2023 and 2024.

However, if a significant reduction in usage is anticipated due to declining clinical demand, operational adjustments, or other factors, institutions may submit actual demand figures with a written explanatory statement.

The administration added that it will also allow policy flexibility for essential, commonly used drugs and pediatric medications.

Medical institutions are required to make submissions by Aug 25.