The Research Of Drug Bidding Procurement System

Bidding and pricing is controversial medical reform issues. Drug bidding procurement, supported by the Ministry of Health, Ministry of Supervision and other departments, has been used as a method to reduce drug prices, giving benefits to citizens, encourage fair procurement procedure, and against corruption in the process of drug purchasing in hospitals. However, since the implementation in 2000, the actual results did not achieve the expectation. On the contrast, it brings many adverse effects and flaws, which caused considerable distress to the production of pharmaceutical manufacturers, hospitals and patient's medical treatment. Furthermore, it leads to question about fundamental values of the system, centralized bidding brings "three parties unsatisfactory", that hospitals are not satisfied, companies are not satisfied, and patients are not satisfied.July 2010, the Ministry of Health, State Council Office for Rectifying, National Development and Reform Commission and other seven state departments jointly issued "Regulations of centralized drug procurement practices for medical institutions" clearly stated centralized procurement of drugs and restriction on all parties'behavior. However, it avoids medicines bidding price management issues in work specifications, institutional responsibilities of the provisions of the tender, the successful fulfillment of the contract procurement contract responsibility and supervises department's authorities, which will directly lead to potential risks and problems on drug price chaos and failure on delivery of the agreement.By analyzing the nature, the process, liability for breach of contract and the current regulatory status of the drug procurement bidding system, the author consider that the centralized drug procurement agencies must adhere to the principals of quality priority and reasonable pricing during the procedure to better evaluate the drug procurement. The drug prices must be verified and established by the Price Administration Department according to "Price Law", "Drug Administration Law". Therefore, drug purchasing agencies should not reduce drug prices as a prerequisite on the successful of bidding. It is illegal that the drug procurement agencies exceed its authorization to reduce drug prices. In addition, due to the complexity of drugs procurement bidding, we can not simply assume"reducing price" to be the main focus of medical reformulation, it may result in neglecting drug quality by excesses on lower prices, which further would cause the disappearance of some drugs with high quality and reasonable price. As a result, it would make the drugs procurement bidding system loss its original purpose.This article is divided into three chapters. Chapter I, "Analysis on the implementation of current centralized drug procurement bidding system in China", describes the system of bidding and purchasing process of current implementation in the country. Chapter II, "Analysis on the implementation of current centralized drug procurement bidding system and problems in Shanghai", focuses on description and analysis of basic drugs procurement bidding and problems in Shanghai in 2010. Chapter III "Suggestions on improving drug procurement bidding system", from the perspective of law to analyze and recommend the improvement and development needs for the drugs procurement bidding system.