Public hospitals in Shenzhen have adopted centralized procurement through a third-party organization to slash drug prices, which is estimated to save nearly 1.5 billion yuan (US$226 million) a year for residents, sznews.com reported.
Taking advantage of its familiarity with how drugs are circulated in the market, the procurement organization will centralize the purchasing demand for public hospitals to lower drug prices while ensuring quality.
The first batch of drugs on the procurement catalogue was in supply this January. The drugs, covering 486 categories, were mainly low-priced drugs in long-term shortage and medicines for first-aid treatment, as well as gynecologic and pediatric drugs.
Unlike the first batch of drugs, which aimed to secure an adequate supply, the second batch, which was procured in May, focused on price reduction and covered 1,159 categories.
The drugs in the second batch included chemical and biological medicines, Chinese patent medicines and fluids for intravenous transfusions, and covered 80 percent of the drugs that ranked atop the purchase list of the city’s public hospitals.
For medicines that were difficult to purchase on the market, such as Protamine sulphate, human fibrinogen and human serum albumin, the organization has also built up a surplus to end the drug shortages that have plagued hospitals for years.
Apart from drugs for chronic diseases, those for surgical use and tumor treatment have also witnessed notable price cuts.
Take the tumor drug Eloxatin as an example. The price of each injection was previously 2,491.03 yuan, but it costs 2,101.19 yuan through the procurement organization’s group-buying method. For a treatment period of six injections, the organization saves a patient 2,393.04 yuan.
“Reducing the drug prices can help improve medical services, which reflect the value of medical staff’s technical labor, such as in diagnosis, treatment, operations, rehabilitation and nursing,” said an industry insider.
According to the insider, the prices of medical services in Shenzhen are relatively low at present. By reducing drug prices, hospitals can have more leeway to adjust their income structure and motivate medical staff.
