Medicine Purchasing Platform Created For Fair Prices Among Hospitals

Medicine Purchasing Platform Created For Fair Prices Among HospitalsPublic and private hospitals in Shenzhen that accepts medical insurance are now required to purchase medicines using a platform that will be operated by the public resource trading center of Guangdong Province and not by the health authority by next year.

Hospital submits their orders and the pharmaceutical enterprises will hand in their quoted prices through the platform and they will automatically match the hospital’s needs with the lowest prices. The changes in purchasing medicines were aimed to prevent hospitals from profiting illegally from drug purchases and intentionally purchasing expensive drugs. Since 2007 these hospitals have been buying drugs using a medicine purchase platform which is operated by the provincial health system. Hospitals then choose medicines among the 27,000 options that the platform was offering.

The new purchasing platform will be directly operated by the provincial government, and suppliers will be invited to do price bidding once a month that can lead to the same medicine being offered but with different prices. Public and private hospitals administrators always argued that changing the price frequently requires more time to explain to patients which will contribute to the current problem of doctor and patient disagreements which is recently seen.

Enterprises will be banned from the platform is they are caught offering a much lower prices in hopes to attract orders but fail to deliver the items. These enterprises will be banned on the platform for at least two years.

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