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Shenzhen Kicks Off Group Purchase of Public Hospital Medicines Pilot Reform

Shenzhen has recently released the Implementing Plan for Collective Purchase of Public Hospital Medicines Pilot Reform which calls for reduction of total cost of drug procurement by 30% with group purchase of drugs taking effect from July.

According to the plan, a third-party group purchase agent will be appointed to carry out the centralised procurement of common drugs for clinical use in all the public hospitals in the city. The agent will be tasked with “buying in large quantity," organising designated production, designated procurement, negotiation and bargaining, so as to reduce medicines intermediate links and the cost of drug procurement.

The collective purchase pilot reform aims to significantly lower the drug supply prices, according to the plan. Total cost of collective procurement of drugs during the pilot period is expected to fall by more than 30% compared with drug costs of the same amount and same product specifications purchased via Guangdong’s existing procurement platform in 2015. Level in reasonable medication use is to be improved, with the city's public hospitals’ drug income accounting for less than 27% of total revenue by 2017. Meanwhile, drug procurement, distribution and clinical use of drugs in public hospitals are to be more standardised and orderly so that commercial bribery in the field of drug sales can be effectively curbed. In addition, the security of supply of drugs has to be enhanced.

The plan also proposes to promote the application and development of "internet-plus" in the field of medicine, improving the informatisation level of drug procurement, distribution, supervision, shortening the link for drug entering hospitals and reducing the manpower cost of hospital pharmacy operations.

Content provided by Picture: HKTDC Research
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