Li vows more steps to cut medical costs

Centralized bulk-buying of drugs to be intensified nationally, meeting decides

China will carry out centralized bulk-buying of drugs and high-value medical consumables on a regular and institutionalized basis in order to further lower patients' medical costs, according to a decision made at the State Council's Executive Meeting chaired by Premier Li Keqiang on Monday.

"The outcomes of the centralized bulk-buying program over the past few years should be fully recognized, as it has not only brought real benefits to patients, but also motivated enterprises to step up product research and development and enhance quality," Li said.

The meeting noted that by the end of last year, the centralized bulk-buying program had helped save more than 260 billion yuan ($40.69 billion) in medical insurance costs and patients' expenditures.

It said that centralized bulk-buying needs to be put on a regular and institutionalized basis to lower the prices of medical services and drugs.

"More drugs for chronic diseases and common illnesses as well as more high-value medical consumables should be incorporated into the bulk-buying program, as this is what people care greatly about," Li said.

The meeting decided to advance the national bulk-buying program, with its focus on drugs for chronic diseases and common illnesses. Sub-national authorities will undertake provincial procurement or interprovincial joint procurement of drugs not covered by the national-level bulk-buying program.

The coverage of bulk-buying regarding high-value medical consumables will be expanded in a well-paced manner, and the bulk-buying of orthopedic consumables and dental implants will be rolled out at national and provincial levels respectively.

"Quality is of the utmost importance for drugs and medical consumables. We must ensure it is not compromised under any circumstance and work even harder to protect people's health," Li said. The meeting stressed the need for a long-term, stable supply of selected drugs and consumables. Medical institutions should use the selected products on a priority basis as appropriate.

Oversight will be enhanced to ensure that the quality of the selected products is not affected due to price reductions.

"We must fully implement the policy for the use of medical insurance funds saved in procurement, and advance the reform of the remuneration system to raise the salary of medical workers as appropriate and keep them better motivated," Li said.

"COVID response and economic and social development should be advanced in parallel. People's normal access to medical services must be guaranteed during the pandemic."