The listing of products on provincial platforms is the first step threshold for public medical institutions to sell products. It used to be a common thing, but with the gradual tightening of policies, provinces began to take a middle way and were reluctant to stand out. Except for national talks, centralized procurement and innovative drugs, the listing of products has become more and more difficult.
A leading enterprise in the industry has long been a benchmark for product listing speed. Notably, they achieved online registration of products immediately after obtaining approval numbers. For provinces with out-of-province pricing, they meticulously negotiated prices in priority-listed regions like Tianjin and Shanghai where pricing was unavailable. While some provinces like Zhejiang allowed initial registration, applications from fewer than 10 provinces or 10 tertiary hospitals would result in no pricing. Following standard corporate logic, sales potential required securing prior online registration. The challenge of obtaining endorsements from ten top-tier hospitals is evident, yet industry giants like them manage it through annual bundled project collaborations. As the saying goes, "All beginnings are hard" —a fitting description for the current listing process of new Category III products.
In the new Category 3 system, first-time listed products are typically generic drugs (with refined formulations). Some provinces require an additional directory update step, though this process is minimal and negligible. Additionally, as being the first entrant without comparable pricing benchmarks, there's a risk of unreasonable price hikes if oversight is lax. Certain provinces that initially supported approved products in their listing processes allowed post-approval price adjustments, explicitly requiring only post-evaluation prices when referencing prices from other provinces. They even permitted products lacking provincial pricing data to directly list in Jiangsu. However, after Jiangsu became the province with excessive first-listing and price-hiking practices for multiple products, it faced public criticism. Subsequently, Jiangsu implemented a new requirement: products without pre-evaluation pricing must submit cost breakdowns and rationality explanations when applying for listing.
Cost is a sensitive topic that companies approach with extreme caution, as they can't predict future costs or potential liabilities. Guangxi has maintained its lowest-price listing commitment for years, with prices widely accepted by other provinces. Once the first province tackles the issue, it becomes relatively straightforward to resolve. What starts as a single-province challenge can quickly expand to three or five provinces, and eventually even ten provinces won't pose significant obstacles.
Assuming companies are willing to provide cost structures that stand up to scrutiny, they could start with provinces like Jiangsu, Guangdong, Xinjiang, and Shandong. While Guangdong might still require cost breakdowns for raw materials, auxiliary materials, and packaging, Shandong has already tightened requirements for first-time applicants significantly. Some product disclosures have been finalized without follow-up actions, including innovative drugs. The author isn't entirely sure about Xinjiang's strictness, but Jiangsu Province has undergone multiple revisions until approaching their regulatory limits. Moreover, these are just current policies. If consensus on new regulations is reached, Jiangsu would need to add an extra provincial price to its existing cost structure, making compliance even more challenging and potentially eliminating its chances of becoming a top-tier province.
Provinces like Guizhou, Yunnan, Shaanxi, and Zhejiang – which previously had the flexibility to set prices through negotiation before listing them online – no longer have such pricing mechanisms. While these provinces haven't fully implemented restrictions yet, other regions can no longer adopt their pricing models. As mentioned earlier, Zhejiang initially applied this policy across 10 provinces or three-tier regions. However, following the new policy's implementation, the coverage will be streamlined to five provinces in one go, eliminating any transitional phase where non-listed regions retain their original pricing structures.
The policy framework for Jiangxi, Hubei, Chongqing, and Heilongjiang stipulates that approval is granted upon the submission of at least one provincial application. For provinces like Hunan, Yunnan, Liaoning, Jilin, Shaanxi, Xinjiang (standard), Ningxia, Inner Mongolia, and Hainan, a three-province consensus is mandatory. Notably, approval isn't guaranteed simply by meeting the three-province requirement – some cases require updated pricing data listed in the official price list. Given the slow update cycle of the price list, implementation timelines in certain provinces have been delayed by 1-2 months. As of August 20th, all 30 provinces (excluding Shanghai) had submitted draft policy proposals following the consensus. Eight provinces – Hebei, Xinjiang, Guangdong, Guizhou, Anhui, Qinghai, Shanxi, and Inner Mongolia – have finalized their versions, with most aligning closely with the drafts while a few still contain revisions. The remaining 23 provinces are expected to follow suit in the coming days.
This demonstrates that for pharmaceuticals competing in the market, successful online listing cannot rely solely on bidding personnel. It requires coordinated efforts from both financial and operational teams. Proactive cost breakdown reports should be prepared to address Jiangsu, Xinjiang, Guangdong, and Shandong provinces. Medical institution bid documents must be ready to engage Qinghai, Zhejiang, Fujian, and Liaoning. The first online procurement order should be secured promptly, as some provinces require actual transactions as eligibility criteria—for instance, Shandong's standard listing (1 provincial price + 1 provincial transaction) and Yunnan's standard listing (3 provincial prices + 1 provincial transaction). Challenges drive performance differentiation, with stricter policies accelerating market competition—a phenomenon reflecting "procurement for utilization." Many provinces may face deactivation or suspension of listings if they fail to secure actual transactions within one or two years after successful listing.
Pharmaceutical procurement officers in enterprises face significant pressure, often becoming scapegoats for business failures. In today's challenging pharmaceutical landscape with cutthroat competition across product categories, annual performance targets snowball down each department. These professionals must constantly justify price adjustments, coding changes, and qualification expirations to secure approval. When product listings get flagged due to pricing issues, coding updates, or expired certifications – ultimately affecting hospital orders and insurance reimbursement – they inevitably pass the buck. While such incidents vary in severity, their occurrence is inevitable. Even during downtime, interdepartmental coordination can resolve these issues. The real challenge lies in bureaucratic buck-passing rather than collaborative problem-solving. National and provincial centralized procurement systems require comprehensive analysis of policies, costs, and competitor strategies to identify optimal solutions. Ultimately, whether you win or lose, it all comes down to strategic decision-making.
Access control serves as the frontline of commercial operations and plays a vital role. Companies should mobilize cross-departmental collaboration to ensure seamless coordination, rather than relying solely on functional departments. A balanced approach is essential: some employees diligently perform tasks without errors, yet you take this for granted; when mistakes occur, you make them bear the consequences. Effective management requires both rewards and punishments, using sound systems to guide human behavior.
Disclaimer: This article is only for the purpose of knowledge exchange and sharing, and does not involve commercial publicity, and does not serve as relevant medical guidance or medication advice. If there is any infringement, please contact us for deletion.
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