Xing Huina:

You may continue to raise your hands for questions. We have time for two more reporters.

Chengdu.cn:

In recent years, centralized procurement of medicines and medical equipment has gradually gained recognition and acceptance. What achievements have been made in this area? Looking ahead, what adjustments are planned for centralized procurement to both lower medical costs for people and promote development in the biomedical industry? Thank you.

Yan Qinghui:

Thank you for your questions. The achievements of centralized procurement can be understood from three aspects.

First, it has lowered medical costs for people and improved the accessibility and quality of medicines. For example, the annual cost of antiviral medicines for hepatitis B, such as Entecavir and Tenofovir, was as high as 4,000 to 5,000 yuan before centralized procurement. After centralized procurement, the annual cost dropped to about 100 to 200 yuan. Clinical studies by medical institutions have shown that the rate of antiviral treatment and standard treatment for hepatitis B patients have increased significantly. Another example is insulin. Since the implementation of centralized procurement, its price has been greatly reduced. Consequently, the use of third-generation insulin, which has better clinical performance, has increased from 58% before centralized procurement to over 70% now.

Second, it has advanced the healthy and high-quality development of the pharmaceutical industry. Centralized procurement has reshaped the ecology of China's pharmaceutical industry and changed its development approach. Before centralized procurement, pharmaceutical enterprises focused on sales channel competition, paying less attention to quality and research and development. Centralized procurement provides a platform for fair and transparent competition, allowing good products to quickly enter the market. Public inquiries into price regulation of thoracic aortic stents and other medical consumables show that price cuts for some pharmaceutical products mainly came from compressing circulation costs, with minimal impact on the actual revenue of production and R&D enterprises. Meanwhile, the expenses saved can be redirected toward innovation, encouraging more enterprises to shift their focus to quality improvement, large-scale production and innovation.

Third, it has contributed to ensuring that public hospitals and medical institutions truly serve the public interest. Centralized procurement has eliminated hidden kickbacks in the distribution of medicines and consumables, leading to more standardized prescribing practices among medical staff. For example, the antibacterial use density (AUD), a key indicator measuring antibiotic consumption in areas prone to drug abuse, has declined from 37.8 in 2018 to 33.8 in 2022. Supporting policies for centralized procurement also focus on increasing legitimate and transparent income for medical institutions and staff. The policies require that medical insurance funds saved through centralized procurement are partially retained by medical institutions after assessment, with a considerable portion funding staff salary reforms. Some regions have also launched pilot projects for pharmaceutical service fees, recognizing the value of technical services provided by physicians and pharmacists. These measures have created conditions for high-quality development in medical institutions, enabling them to truly serve the public interest.

Next, the health care security authorities will vigorously expand the scope and improve the quality of centralized medicine procurement. We will continue to broaden the scope of centralized procurement, including launching new batches of national-organized drug and high-value medical consumables procurement. High-value medical consumables such as cochlear implants will be included in the procurement program. We will strengthen regional coordination, with a focus on guiding localities to advance centralized procurement for traditional Chinese medicines, TCM decoction pieces, and in vitro diagnostic reagents through alliances. We will proceed smoothly with follow-up procurement, enhance the refined management of procurement execution, and collaborate with relevant departments to reinforce management measures for the use, supply and monitoring of selected products. We will ensure that the selected products are promptly delivered to hospitals and prioritized for use. Additionally, we will take measures to hold selected enterprises accountable for ensuring product quality and supply. Thank you.