National Traditional Chinese Patent Medicines And Simple Preparations Alliance Centralized Purchase Rules

May 30, 2023

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Recently, the Pharmaceutical Price and Bidding Procurement Management Service Network of Hubei Province released the Centralized Procurement Document of the National traditional Chinese patent medicines and simple preparations Purchasing Alliance (hereinafter referred to as the "Procurement Document"), which provides detailed and clear regulations on procurement varieties and procurement demand, procurement cycle and procurement agreement, agreed procurement volume distribution and other matters.
According to the Procurement Document, the centralized procurement of traditional Chinese patent medicines and simple preparations is divided into 16 product groups and 42 varieties, including many large varieties such as cinobufagin, Compound Xueshuantong and Xinkeshu. Among them, the top three in terms of procurement demand in the first year were Xinkeshu, Naoan, and Fufang Xueshuantong, with a procurement volume of over 400 million tablets (piece/bag/capsule/pill); The purchase demand for Brucea javanica oil emulsion injection in the first year was the lowest, with only over 6.05 million units.
The Procurement Document stipulates that the centralized procurement period of traditional Chinese patent medicines and simple preparations is 2 years, which can be extended by 1 year depending on the situation. During the procurement period, the procurement agreement is signed once a year. During the procurement cycle, medical institutions prioritize the use of selected drugs in this centralized bulk procurement. The procurement group drugs for products that have not been selected and those for enterprises that have not been selected will be included in the monitoring and management of the alliance region.
The Procurement Document specifies the declared price of the centralized purchase of traditional Chinese patent medicines and simple preparations. The benchmark price is the lowest bid winning/online price of all products in the "supply list" of the applicant on the national provincial procurement platform as of the release date of the National traditional Chinese patent medicines and simple preparations Alliance Procurement Announcement (No. 1 in 2022), that is, September 9, 2022. In addition, under the same drug name, enterprises applying for injection type products of the same specification, different packaging quantities, and the same dosage form, different specifications must be converted to the minimum preparation unit (single tube, single bottle) price, and the lowest price shall be converted to the benchmark price of the corresponding packaging quantity products; Under the same drug name, the benchmark price of oral dosage forms declared by enterprises with the same dosage form, same specification, and different packaging quantities should comply with the principle of small packaging being lower than large packaging.
At the end of March, the relevant personnel of Hubei Medical Insurance Bureau said at an industry forum that the national traditional Chinese patent medicines and simple preparations alliance will focus on reasonable price reduction, supplemented by enterprise technical evaluation, and implement comprehensive consideration to achieve the goal of stabilizing the market and clinical stability. Introducing technical indicators such as recognition of medical institutions can not only encourage high quality and competitive pricing, but also take into account the clinical recognition and usage connection of bidding results.
In this regard, the "Procurement Document" clearly stipulates that within the same competitive unit, the shortlisted enterprises will be determined based on the actual comprehensive scores of the declared enterprises in descending order. The comprehensive score is calculated based on factors such as the decrease in the quoted representative products and the recognition of medical institutions, comprehensive ranking, innovation ability, medicinal material quality, supply guarantee, credit evaluation, quality and safety. Among them, the price competition score accounts for 60% and the technical evaluation score accounts for 40%.
In determining the selected enterprises, the Procurement Document divides them into three categories, including direct selection, negotiated selection, and supplementary selection. Both direct selection and negotiated selection must meet certain conditions, that is, the shortlisted enterprises must not exceed 1.8 times the average daily cost of the same procurement group.
In addition, the "Procurement Document" also stipulates that the products of the directly selected enterprises will be allocated according to 100% of the procurement demand for the products with the highest reduction within the same bidding unit, and other selected products will be allocated according to 90% of the procurement demand; The products of the selected enterprise in the negotiation will be allocated according to 70% of the procurement demand; The selected products can be allocated based on 60% or 50% of the purchase demand according to different situations.
On September 9, 2022, the National traditional Chinese patent medicines and simple preparations Joint Procurement Office issued the National traditional Chinese patent medicines and simple preparations Alliance Procurement Announcement (No. 1 in 2022), specifying that the National traditional Chinese patent medicines and simple preparations Joint Procurement Office is composed of representatives from 29 provinces, autonomous regions, municipalities directly under the Central Government, including Hubei Province, Beijing City, Tianjin City, Hebei Province, Shanxi Province, Inner Mongolia Autonomous Region, and Xinjiang Production and Construction Corps 42 traditional Chinese patent medicines and simple preparations products were intensively purchased. This is also the second batch of traditional Chinese patent medicines and simple preparations alliance centralized procurement led by Hubei Province under the guidance of the National Health Insurance Bureau.
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