On December 10th, the National Healthcare Security Administration and the National Health Commission jointly issued a notice on improving the mechanism for centralized and quantity based procurement and implementation of pharmaceuticals. The Notice further improves the mechanism for centralized quantity based procurement and implementation of pharmaceuticals on the basis of existing policies, guiding medical institutions and pharmaceutical enterprises to follow and support the centralized quantity based procurement mechanism, consolidating and deepening the reform achievements of centralized quantity based procurement of drugs and medical consumables, and benefiting more patients. The Notice on Collaborative Supervision between Departments focuses on proposing detailed measures for the entry, use, monitoring, assessment, feedback, and other aspects of centralized procurement of drugs and consumables, reflecting the policy orientation of collaborative supervision between departments and prioritizing the use of selected products. In terms of hospital admission, local authorities are required to conduct investigations and sorting from the third month of the implementation of each batch of centralized procurement, and urge medical institutions to complete the admission work as soon as possible. Medical institutions are required to improve the management level of the use of selected products, improve internal assessment methods and salary systems, strengthen prescription reviews, give reasonable priority to the use of selected products, and restrict the behavior of issuing high priced non selected drugs without justifiable reasons. In terms of monitoring and assessment, we will strengthen the management of the prices of centrally purchased varieties on the internet, emphasize that selected products should be listed on the internet in a timely manner according to the selected prices, and take measures such as suspending procurement and withdrawing from the internet for non selected products with prices higher than relevant policy regulations. Establish a sound and normalized monitoring mechanism to dynamically monitor the procurement progress and proportion of selected varieties and medical institutions. In terms of supply guarantee, it is required to improve the consultation mechanism for centralized procurement at the provincial level. Provincial medical insurance departments, together with health and related departments, medical institutions, selected enterprises, etc., should have smooth communication channels to discuss and handle issues such as insufficient supply, untimely delivery, and selective delivery reported by medical institutions. In terms of collaborative supervision, we will jointly promote comprehensive industry supervision. Relevant departments will analyze and judge clues of improper practices such as "selling with money", and take measures such as reminders, education, interviews, and notifications for medical institutions that do not prioritize the use of selected drugs and consumables without reason. For serious cases, medical insurance and health departments will conduct joint interviews, and if necessary, relevant clues will be handed over to promote the formation of a guidance that encourages the priority use of selected drugs and consumables. Accumulated savings of over 500 billion yuan in medical insurance funds. It is reported that the results of the tenth batch of national drug procurement will be announced on December 12th. According to the previous announcement by the National Organization for Drug Joint Procurement Office on the "National Centralized Drug Procurement Document (GY-YD2024-2)", this centralized procurement involves a total of 62 varieties and 263 specifications. Guojin Securities believes that compared to the previous batches of centralized procurement, the tenth batch of centralized procurement has fewer large varieties and more product layout enterprises. Therefore, the risk margin brought by centralized procurement to a single enterprise is weakened. In the future, with the implementation of the tenth batch of centralized procurement, the space outside the standard market will gradually be compressed, which will encourage more enterprises to engage in centralized procurement and win market share by improving product quality and reducing costs. This will help promote the overall competitiveness of the pharmaceutical industry and benefit the market share of top enterprises. Previously, the National Healthcare Security Administration reported that the preliminary estimate of the centralized procurement of drugs and consumables in recent years has created over 500 billion yuan in medical insurance fund space for new drug consumption, new technology access, and medical service price adjustments. (New Society)