The Highest Reduction In The Price Of Artificial Joint With The Quantity Of Purchased Varieties Or More Than 90%

The specific type of artificial joint procurement was formally delineated.

      On August 23, the joint procurement office of national organization for high value medical consumables issued the document on centralized procurement of artificial joints (gh-hd2021-1), which is composed of Procurement Alliance composed of provinces (autonomous regions and municipalities directly under the central government) and Xinjiang production and Construction Corps, and the joint procurement office of high-value medical consumables of the state organization was composed of Representatives, On behalf of local public medical institutions (including military medical institutions) and voluntary medical insurance designated social medical institutions to carry out centralized procurement of high-value medical consumables, Tianjin medical procurement center undertakes the daily work and specific implementation.

This collection of artificial joint products involves a number of key orthopedic consumables such as primary total hip replacement (hereinafter referred to as "hip joint") and primary total knee replacement (hereinafter referred to as "knee joint"). Knee joint as a product system category to carry out centralized procurement with quantity. The procurement cycle of the artificial joint centralized quantity is 2 years, which is calculated from the actual implementation date of the selected results in each region of the alliance.

"Centralized purchasing will definitely suppress the gold sales in the sales of orthopedic consumables, which is beneficial to the development of the industry in the long run. However, the needs of different patients are different, and some patients may be willing to continue to buy imported products at high prices. In the future, medical subdivision and classification may be accelerated in orthopedics." An industry person in South China told the reporter of the 21st century economic report.

The price drop is expected to be the largest or more than 90%

The procurement documents are clear, and the procurement agreement is signed every year within the procurement cycle. When the purchase agreement is renewed, in principle, it shall not be less than the agreed purchase amount of the selected enterprise in the previous year. The medical institution shall fill in and fill in the medical consumables joint procurement platform of the state organization with reference to the actual clinical use and enterprise supply of the previous year.

During the purchasing period, the medical institution completes the agreement purchase quantity of the current year, and the part exceeding the agreement purchase quantity shall be supplied by the selected enterprise according to the winning price until the end of the purchasing period.

Within the procurement cycle, medical institutions can purchase other artificial joint products with appropriate price according to the relevant provisions of centralized procurement management of medical consumables in the province, on the basis of giving priority to the use of the product selection system in this centralized procurement of artificial joints.

When using the selected product system in the centralized procurement of artificial joints, the medical institutions shall decide whether to use acetabular screws or patellar prosthesis according to actual needs. If they need to use, they shall be purchased according to the declared price of the components in the selected product system. Acetabular screws and patellar prosthesis are not included in the scope of "belt quantity".

The most important feature of centralized purchase is "exchanging quantity with price". How much will the final price drop of artificial joint products be?

In November 2020, the seven cities alliance of Zibo in Shandong Province completed the procurement with quantity. Among them, orthopedic trauma products decreased by 67.3% on average, and the largest decline of single product was 94%. At the scene of the negotiation, an enterprise representative initially quoted 17200 yuan, and finally 2643 yuan for the market of the alliance of seven cities.

On April 24 this year, Suzhou, Yancheng, Suqian, Xuzhou, Nantong, Huai'an and other six cities formed an alliance to carry out negotiations on the renewal and extension of medical consumables with volume in Suzhou public resources trading center. On the same day, 211 public medical institutions of grade II or above in six cities launched fierce negotiations with 29 manufacturers on three types of medical consumables, including artificial bone. After more than 4 hours of quotation and negotiation, the average reduction rates of artificial bone, anchor with thread and single non absorbable clip under endoscope were 67%, 52% and 72%, respectively, and the highest reduction rates were 73%, 77% and 92%.

Based on this, there are also a number of industry insiders predict that the price of artificial joint centralized procurement in the country will drop by more than 90%.

Recently, the state medical insurance bureau clearly pointed out in the reply to the recommendation No. 8374 of the fourth session of the 13th National People's Congress that we will continue to promote the centralized procurement of medical consumables. In accordance with the decision-making and deployment of the Party Central Committee and the State Council, our bureau, together with the health and Health Commission and the food and drug administration, will promote the centralized procurement of medical consumables in an orderly manner The basic principle of linking quantity with price.

Some consumables with large clinical dosage and high purchase amount are included in the scope of bidding, and the reform has made positive progress. Centralized procurement with quantity adheres to the working mechanism of state organization, alliance procurement and platform operation, and focuses on improving the market-oriented price formation mechanism. The government is only responsible for the organization and policy formulation of procurement, not "government centralized procurement".

In addition, the state medical insurance bureau also pointed out that on the basis of summarizing the successful experience of centralized drug procurement, fully absorbed the local good practices, combined with the characteristics of high-value medical consumables, carried out the centralized procurement of coronary stents organized by the state. The price of the selected products decreased from 13000 yuan to about 700 yuan, which greatly squeezed out the water in the intermediate link and significantly reduced the burden of patients. Patients across the country have used the reduced price products in January 2021. At present, the procurement progress is in line with the expectation, and the support supply is stable. Now, we have started the centralized procurement of artificial joint medical consumables, and are actively preparing for the preparatory work.

Domestic and imported prices are classified seriously

According to the 21st century economic report reporter, the orthopedic doctor of a top three hospital in Guangzhou said to the reporter of the 21st century economic report: "at present, the cheapest artificial joint cost in China is about 10000-20000 yuan. According to the different materials and designs, there are also 30000-80000 yuan artificial joints. The specific price should be selected according to the patient's age, economic conditions and functional requirements. The import must be more expensive, But there are also many patients willing to pay for better results. The expensive and cheap of prosthesis is mainly due to the different materials of friction interface. Taking hip prosthesis as an example, the friction interface of hip joint has ceramic and metal. Ceramics have a high wear resistance and, in theory, last longer than metals, so they are more expensive. "

At present, the overall market value of A-share medical sector is more than 7.5 trillion yuan, including Dabo medical, Sanyou medical and so on. In addition, AVIC bio, a subsidiary of AVIC high tech, mainly produces artificial joints, but its revenue scale is very small. Hong Kong stock related listed companies include Aikang medical, Chunli medical, Weigao shares and minimally invasive medical.

At present, the price of domestic artificial joints ranges from several thousand yuan to more than ten thousand yuan, among which the price of ceramic hip joint (especially powder ceramic) is higher.

Dongguan securities previously issued a research report pointed out that the artificial joint centralized purchase will have a greater impact on related companies. Referring to the first centralized purchase of medical consumables, the price of cardiac stent dropped from 13000 yuan to about 700 yuan, a drop of more than 90%. It is expected that the price of artificial joint in the second centralized purchase of medical consumables will also decrease greatly. At present, there is not a big gap in the raw materials of each joint in our country. Enterprises with advantages in production technology, product quality and cost control will have a stronger voice. However, considering that the centralized purchase will have a great impact on the product price, the increase of sales volume may not make up for the profit loss caused by the price reduction, and the excellent joint enterprises will also need to find a way out in multiple dimensions.

Zhongtai Securities said that compared with the national procurement of coronary stents, the rules of the centralized procurement scheme of artificial joints tend to be relaxed, and the price is no longer the only factor to be considered, and from the grouping and shortlisting rules, it is also good for the head enterprises with rich product lines, and it is recommended to pay attention to domestic head enterprises.

Capital securities also said that with the increase of market scale caused by the aging population, the penetration rate of products after centralized purchase continues to increase, and the development process of domestic brands is accelerating, and the domestic joint leader is expected to grow rapidly.