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    Home > Medical News > Latest Medical News > The procurement of traditional Chinese medicine decoction pieces is not easy, and the concentration of decoction pieces enterprises will increase!

    The procurement of traditional Chinese medicine decoction pieces is not easy, and the concentration of decoction pieces enterprises will increase!

    • Last Update: 2021-03-21
    • Source: Internet
    • Author: User
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    Medical Network News on March 15 
     
      Chinese medicine companies, it's really difficult
     
      Procurement of Chinese medicine decoction pieces is not easy
     
      On March 11, the Guilin Municipal Health Commission of Guangxi Province issued the "Announcement on the Public Selection and Procurement of Decoction Pieces for Guilin Hospital of Integrated Traditional Chinese and Western Medicine in 2021".
    This seemingly simple procurement announcement for decoction pieces actually contains a lot of unsimple information.
     
      Judging from the content of the announcement, the following requirements deserve special attention from medical professionals:
     
      Requirements for registered companies:
     
      1.
    The annual sales of Chinese herbal medicine decoction pieces production enterprises should be more than 5 million yuan, the types of decoction pieces business should reach more than 500 kinds, the storage area is not less than 1,000 square meters, there is a specimen room or a sample room, and the quality inspection facilities are complete;
     
      2.
    The registered enterprise should be equipped with a sufficient number of decoction pieces, according to the plan issued by the hospital, provide the types, specifications and quantity of decoction pieces, which can be transported to the designated location of the hospital within 48 hours.
     
      In terms of regulations that must be followed after bidding:
     
      1.
    Sign the "Purchase and Sale Contract of Traditional Chinese Medicine Decoction Pieces" and the "Incorruption Agreement" with the selected person in a timely manner, and strictly perform the purchase and sale contract;
     
      2.
    The supplier must deliver qualified TCM decoction pieces of the same or higher quality as the selected sample.
    If the quality of the selected sample is found to be inconsistent with the selected sample during the warehousing check and acceptance, or it is found to be inconsistent with the quality of the selected sample, the 2015 edition and the 2020 edition (December 2020) Executed after months), "Guangxi Zhuang Autonomous Region Traditional Chinese Medicine Processing Regulations" standards do not meet the standards, the hospital will return the product and cancel the eligibility for supply of the product.
    If the product cannot be delivered or is not delivered in time, the eligibility for supply of the product will also be cancelled.
    And postpone the second supplier according to the scoring standard.
    By analogy, if there are 5 varieties that are disqualified for supply, the contract with the supplier will be terminated, and the supplier's supply varieties will be allocated to other selected suppliers based on the bid evaluation scores.
     
      According to industry insiders, it is difficult for some companies to reach the green part of the content required by registered companies.
    From the above requirements, we can also find that when Chinese herbal medicine companies enter the hospital to purchase, they focus on the following keywords: corporate strength, clean purchase and sales, and product quality.
     
      Problems in the purchase and sale of Chinese herbal medicine
     
      At present, the centralized procurement of medicines , whether organized by the state or the local area , is mostly in the fields of Western medicine and Chinese patent medicines, and there are very few cases of centralized procurement of Chinese medicine decoction pieces.
    Some are only pilot projects in a small number of regions.
    For example, in September 2018, Gansu Province initiated the negotiation and procurement of Chinese medicine decoction pieces to promote poverty alleviation; in May 2020, the "Public Medical Institutions in Fenghua District, Ningbo" issued by the Medical Insurance Bureau of Fenghua District, Ningbo Implementation Plan for Centralized Procurement of Chinese Medicine Decoction Pieces, etc.
     
      For the procurement of Chinese medicine decoction pieces, many are led by the hospital's publicly announced bidding projects.
    Regarding why the aforementioned procurement announcement requires
    companies to sign the "Integrity Agreement", a person familiar with the matter said to Cyberland that this actually explains the possible problems in the procurement of decoction pieces.
     
      The person said that in the procurement process of Chinese medicine decoction pieces in some hospitals , there is no open and transparent procurement mechanism, and there may be black-box operations.
    For example, although it is an open
    tender and three companies participate, these companies do not bid at the same time.
    Who can make the last offer and win the bid after knowing the prices of the two? There is room for operation, and it may involve purchasing.
    Personnel benefits, rebates, etc.
     
      Once a rebate occurs in the purchase and sale of Chinese herbal medicine pieces, it will naturally affect the quality of Chinese herbal medicine pieces.
    The bid-winning supplier has a good relationship with the hospital, or the hospital usually knows what specifications of decoction pieces of Chinese medicine are used in advance, so there is room for manipulation in the quality of the product.
    In certain types of bidding, product specifications and grades are required, but as long as they are mixed within a certain range, even if there is a rebate, the company's profits are still very large.
    For example, when astragalus is packaged, the large-scale packaging only accounts for 70%-80%, and the small and medium-sized tablets account for 20%-30%.
    Generally speaking, this is the large-scale packaging.
    Since the small and medium-sized tablets are relatively cheap, the profit appears on this.
     
      The concentration of Chinese herbal medicine enterprises will increase
     
      Purchasing Chinese herbal medicine pieces from hospitals requires the company's sales, the number of operating varieties, storage area, and delivery to designated locations within the specified time.
    It can be found that the strength of Chinese herbal medicine enterprises is becoming more and more important.
     
      In the past, due to low market barriers and serious disorganization of operators, data shows that the top five Chinese herbal medicine decoction pieces companies have a market share of less than 5%.
    However, as the policy and the market have higher and higher requirements for Chinese herbal medicine decoction pieces, some small and medium-sized Chinese herbal medicine decoction pieces enterprises will gradually withdraw from the competition, and the market concentration will gradually increase.
     
      Taking the high requirements of the 2020 edition of the Pharmacopoeia on pesticide residues as an example, this will increase the cost of Chinese herbal medicine decoction pieces.
    Race Bo blue freelance writer author, in
    medicine industry, drinking alone tells tournament next month veteran blue cypress, because the relevant equipment testing Chinese herbs, Chinese Herbal Medicine 33 valuable pesticide residues, only the quality of temperament, LC-quality two kinds of imported equipment It takes more than 3 million yuan to purchase, plus the corresponding laboratory facilities, staff salaries, daily maintenance and other expenses, which are not affordable by ordinary small and medium-sized pharmaceutical companies.
     
      If testing is conducted through a third-party organization, it will also be a flaw for the weaker companies.
    In the past, Chinese herbal medicine decoction pieces companies could purchase in small batches, but as the cost of testing increases, companies must buy in large quantities when it is cost-effective.
    Because the larger the amount, the average test cost per kilogram will be lowered.
    Regardless of the size of the decoction piece enterprises, the number of varieties sold is actually the same.
    However, compared with large companies, small companies obviously do not have the financial strength and storage conditions to purchase a large amount of each product, so small and medium-sized enterprises will gradually be eliminated in the future.
     
      In addition, the problem of pesticide residues is also a headache for suppliers.
    The month alone tells Cyberland that the Chinese medicine decoction pieces purchased by the hospital must meet the requirements of the pharmacopoeia, so the supplier is required to control the quality of the product.
    If a certain item is spot-checked by the China Food and Drug Administration that does not comply with the pharmacopoeia, all the responsibilities incurred will be borne by the supplier.
     
      For example, the supplier has already inspected the product before it is delivered.
    Traditional Chinese medicine is different from Western medicine, so it is difficult to unify the quality.
    Different lengths of the same piece of land may be different.
    The pesticide residue did not exceed the standard during the company's inspection, but it was found unqualified at the terminal to be required to return or be punished.
    This situation may exist.
    Therefore, under the high requirements of the new pharmacopoeia, hospital suppliers will also face great pressure.
     
      Yuexia alone thinks that from the perspective of future trends, whether it is vegetables or Chinese medicinal materials, the problem of pesticide residues is an unavoidable problem.
    Uncontrolled flooding will definitely not work, but this requires a transition period.
    For example, there was a problem of sulfur fumigation in traditional Chinese medicine in the past.
    After the 2015 edition of the Pharmacopoeia required sulfur residue limits, companies used various methods to improve it.
    Nowadays, there are almost no sulfur in traditional Chinese medicines on the market.
     
      On the whole, although the traditional Chinese medicine industry will face a period of pain, it will definitely develop in the direction of higher quality and stronger in the future.
    Medical Network News on March 15 
     
      Chinese medicine companies, it's really difficult
     
      Procurement of Chinese medicine decoction pieces is not easy
     
      On March 11, the Guilin Municipal Health Commission of Guangxi Province issued the "Announcement on the Public Selection and Procurement of Decoction Pieces for Guilin Hospital of Integrated Traditional Chinese and Western Medicine in 2021".
    This seemingly simple procurement announcement for decoction pieces actually contains a lot of unsimple information.
     
      Judging from the content of the announcement, the following requirements deserve special attention from medical professionals:
     
      Requirements for registered companies:
     
      1.
    The annual sales of Chinese herbal medicine decoction pieces production enterprises should be more than 5 million yuan, the types of decoction pieces business should reach more than 500 kinds, the storage area is not less than 1,000 square meters, there is a specimen room or a sample room, and the quality inspection facilities are complete;
     
      2.
    The registered enterprise should be equipped with a sufficient number of decoction pieces, according to the plan issued by the hospital, provide the types, specifications and quantity of decoction pieces, which can be transported to the designated location of the hospital within 48 hours.
     
      In terms of regulations that must be followed after bidding:
     
      1.
    Sign the "Purchase and Sale Contract of Traditional Chinese Medicine Decoction Pieces" and the "Incorruption Agreement" with the selected person in a timely manner, and strictly perform the purchase and sale contract;
     
      2.
    The supplier must deliver qualified TCM decoction pieces of the same or higher quality as the selected sample.
    If the quality of the selected sample is found to be inconsistent with the selected sample during the warehousing check and acceptance, or it is found to be inconsistent with the quality of the selected sample, the 2015 edition and the 2020 edition (December 2020) Executed after months), "Guangxi Zhuang Autonomous Region Traditional Chinese Medicine Processing Regulations" standards do not meet the standards, the hospital will return the product and cancel the eligibility for supply of the product.
    If the product cannot be delivered or is not delivered in time, the eligibility for supply of the product will also be cancelled.
    And postpone the second supplier according to the scoring standard.
    By analogy, if there are 5 varieties that are disqualified for supply, the contract with the supplier will be terminated, and the supplier's supply varieties will be allocated to other selected suppliers based on the bid evaluation scores.
     
      According to industry insiders, it is difficult for some companies to reach the green part of the content required by registered companies.
    From the above requirements, we can also find that when Chinese herbal medicine companies enter the hospital to purchase, they focus on the following keywords: corporate strength, clean purchase and sales, and product quality.
     
      Problems in the purchase and sale of Chinese herbal medicine
     
      At present, the centralized procurement of medicines , whether organized by the state or the local area , is mostly in the fields of Western medicine and Chinese patent medicines, and there are very few cases of centralized procurement of Chinese medicine decoction pieces.
    Some are only pilot projects in a small number of regions.
    For example, in September 2018, Gansu Province initiated the negotiation and procurement of Chinese medicine decoction pieces to promote poverty alleviation; in May 2020, the "Public Medical Institutions in Fenghua District, Ningbo" issued by the Medical Insurance Bureau of Fenghua District, Ningbo Implementation Plan for Centralized Procurement of Chinese Medicine Decoction Pieces, etc.
     
      For the procurement of Chinese medicine decoction pieces, many are led by the hospital's publicly announced bidding projects.
    Regarding why the aforementioned procurement announcement requires
    companies to sign the "Integrity Agreement", a person familiar with the matter said to Cyberland that this actually explains the possible problems in the procurement of decoction pieces.
     
      The person said that in the procurement process of Chinese medicine decoction pieces in some hospitals , there is no open and transparent procurement mechanism, and there may be black-box operations.
    For example, although it is an open
    tender and three companies participate, these companies do not bid at the same time.
    Who can make the last offer and win the bid after knowing the prices of the two? There is room for operation, and it may involve purchasing.
    Personnel benefits, rebates, etc.
     
      Once a rebate occurs in the purchase and sale of Chinese herbal medicine pieces, it will naturally affect the quality of Chinese herbal medicine pieces.
    The bid-winning supplier has a good relationship with the hospital, or the hospital usually knows what specifications of decoction pieces of Chinese medicine are used in advance, so there is room for manipulation in the quality of the product.
    In certain types of bidding, product specifications and grades are required, but as long as they are mixed within a certain range, even if there is a rebate, the company's profits are still very large.
    For example, when astragalus is packaged, the large-scale packaging only accounts for 70%-80%, and the small and medium-sized tablets account for 20%-30%.
    Generally speaking, this is the large-scale packaging.
    Since the small and medium-sized tablets are relatively cheap, the profit appears on this.
     
      The concentration of Chinese herbal medicine enterprises will increase
     
      Purchasing Chinese herbal medicine pieces from hospitals requires the company's sales, the number of operating varieties, storage area, and delivery to designated locations within the specified time.
    It can be found that the strength of Chinese herbal medicine enterprises is becoming more and more important.
     
      In the past, due to low market barriers and serious disorganization of operators, data shows that the top five Chinese herbal medicine decoction pieces companies have a market share of less than 5%.
    However, as the policy and the market have higher and higher requirements for Chinese herbal medicine decoction pieces, some small and medium-sized Chinese herbal medicine decoction pieces enterprises will gradually withdraw from the competition, and the market concentration will gradually increase.
     
      Taking the high requirements of the 2020 edition of the Pharmacopoeia on pesticide residues as an example, this will increase the cost of Chinese herbal medicine decoction pieces.
    Race Bo blue freelance writer author, in
    medicine industry, drinking alone tells tournament next month veteran blue cypress, because the relevant equipment testing Chinese herbs, Chinese Herbal Medicine 33 valuable pesticide residues, only the quality of temperament, LC-quality two kinds of imported equipment It takes more than 3 million yuan to purchase, plus the corresponding laboratory facilities, staff salaries, daily maintenance and other expenses, which are not affordable by ordinary small and medium-sized pharmaceutical companies.
     
      If testing is conducted through a third-party organization, it will also be a flaw for the weaker companies.
    In the past, Chinese herbal medicine decoction pieces companies could purchase in small batches, but as the cost of testing increases, companies must buy in large quantities when it is cost-effective.
    Because the larger the amount, the average test cost per kilogram will be lowered.
    Regardless of the size of the decoction piece enterprises, the number of varieties sold is actually the same.
    However, compared with large companies, small companies obviously do not have the financial strength and storage conditions to purchase a large amount of each product, so small and medium-sized enterprises will gradually be eliminated in the future.
     
      In addition, the problem of pesticide residues is also a headache for suppliers.
    The month alone tells Cyberland that the Chinese medicine decoction pieces purchased by the hospital must meet the requirements of the pharmacopoeia, so the supplier is required to control the quality of the product.
    If a certain item is spot-checked by the China Food and Drug Administration that does not comply with the pharmacopoeia, all the responsibilities incurred will be borne by the supplier.
     
      For example, the supplier has already inspected the product before it is delivered.
    Traditional Chinese medicine is different from Western medicine, so it is difficult to unify the quality.
    Different lengths of the same piece of land may be different.
    The pesticide residue did not exceed the standard during the company's inspection, but it was found unqualified at the terminal to be required to return or be punished.
    This situation may exist.
    Therefore, under the high requirements of the new pharmacopoeia, hospital suppliers will also face great pressure.
     
      Yuexia alone thinks that from the perspective of future trends, whether it is vegetables or Chinese medicinal materials, the problem of pesticide residues is an unavoidable problem.
    Uncontrolled flooding will definitely not work, but this requires a transition period.
    For example, there was a problem of sulfur fumigation in traditional Chinese medicine in the past.
    After the 2015 edition of the Pharmacopoeia required sulfur residue limits, companies used various methods to improve it.
    Nowadays, there are almost no sulfur in traditional Chinese medicines on the market.
     
      On the whole, although the traditional Chinese medicine industry will face a period of pain, it will definitely develop in the direction of higher quality and stronger in the future.
    Medical Network News on March 15 
     
      Chinese medicine companies, it's really difficult
     
     
      Procurement of Chinese medicine decoction pieces is not easy
      Procurement of Chinese medicine decoction pieces is not easy
     
      On March 11, the Guilin Municipal Health Commission of Guangxi Province issued the "Announcement on the Public Selection and Procurement of Decoction Pieces for Guilin Hospital of Integrated Traditional Chinese and Western Medicine in 2021".
    This seemingly simple procurement announcement for decoction pieces actually contains a lot of unsimple information.
     
      Judging from the content of the announcement, the following requirements deserve special attention from medical professionals:
     
      Requirements for registered companies:
     
      1.
    The annual sales of Chinese herbal medicine decoction pieces production enterprises should be more than 5 million yuan, the types of decoction pieces business should reach more than 500 kinds, the storage area is not less than 1,000 square meters, there is a specimen room or a sample room, and the quality inspection facilities are complete;
     
      2.
    The registered enterprise should be equipped with a sufficient number of decoction pieces, according to the plan issued by the hospital, provide the types, specifications and quantity of decoction pieces, which can be transported to the designated location of the hospital within 48 hours.
     
      In terms of regulations that must be followed after bidding:
     
      1.
    Sign the "Purchase and Sale Contract of Traditional Chinese Medicine Decoction Pieces" and the "Incorruption Agreement" with the selected person in a timely manner, and strictly perform the purchase and sale contract;
     
      2.
    The supplier must deliver qualified TCM decoction pieces of the same or higher quality as the selected sample.
    If the quality of the selected sample is found to be inconsistent with the selected sample during the warehousing check and acceptance, or it is found to be inconsistent with the quality of the selected sample, the 2015 edition and the 2020 edition (December 2020) Executed after months), "Guangxi Zhuang Autonomous Region Traditional Chinese Medicine Processing Regulations" standards do not meet the standards, the hospital will return the product and cancel the eligibility for supply of the product.
    If the product cannot be delivered or is not delivered in time, the eligibility for supply of the product will also be cancelled.
    And postpone the second supplier according to the scoring standard.
    By analogy, if there are 5 varieties that are disqualified for supply, the contract with the supplier will be terminated, and the supplier's supply varieties will be allocated to other selected suppliers based on the bid evaluation scores.
     
      According to industry insiders, it is difficult for some companies to reach the green part of the content required by registered companies.
    From the above requirements, we can also find that when Chinese herbal medicine companies enter the hospital to purchase, they focus on the following keywords: corporate strength, clean purchase and sales, and product quality.
     
      Problems in the purchase and sale of Chinese herbal medicine
      Problems in the purchase and sale of Chinese herbal medicine
     
      At present, the centralized procurement of medicines , whether organized by the state or the local area , is mostly in the fields of Western medicine and Chinese patent medicines, and there are very few cases of centralized procurement of Chinese medicine decoction pieces.
    Some are only pilot projects in a small number of regions.
    For example, in September 2018, Gansu Province initiated the negotiation and procurement of Chinese medicine decoction pieces to promote poverty alleviation; in May 2020, the "Public Medical Institutions in Fenghua District, Ningbo" issued by the Medical Insurance Bureau of Fenghua District, Ningbo Implementation Plan for Centralized Procurement of Chinese Medicine Decoction Pieces, etc.
    Medicine, medicine, medicine
     
      For the procurement of Chinese medicine decoction pieces, many are led by the hospital's publicly announced bidding projects.
    Regarding why the aforementioned procurement announcement requires
    companies to sign the "Integrity Agreement", a person familiar with the matter said to Cyberland that this actually explains the possible problems in the procurement of decoction pieces.
    Enterprise business enterprise
     
      The person said that in the procurement process of Chinese medicine decoction pieces in some hospitals , there is no open and transparent procurement mechanism, and there may be black-box operations.
    For example, although it is an open
    tender and three companies participate, these companies do not bid at the same time.
    Who can make the last offer and win the bid after knowing the prices of the two? There is room for operation, and it may involve purchasing.
    Personnel benefits, rebates, etc.
    Hospital Hospital Hospital Bidding Bidding Bidding
     
      Once a rebate occurs in the purchase and sale of Chinese herbal medicine pieces, it will naturally affect the quality of Chinese herbal medicine pieces.
    The bid-winning supplier has a good relationship with the hospital, or the hospital usually knows what specifications of decoction pieces of Chinese medicine are used in advance, so there is room for manipulation in the quality of the product.
    In certain types of bidding, product specifications and grades are required, but as long as they are mixed within a certain range, even if there is a rebate, the company's profits are still very large.
    For example, when astragalus is packaged, the large-scale packaging only accounts for 70%-80%, and the small and medium-sized tablets account for 20%-30%.
    Generally speaking, this is the large-scale packaging.
    Since the small and medium-sized tablets are relatively cheap, the profit appears on this.
     
      The concentration of Chinese herbal medicine enterprises will increase
      The concentration of Chinese herbal medicine enterprises will increase
     
      Purchasing Chinese herbal medicine pieces from hospitals requires the company's sales, the number of operating varieties, storage area, and delivery to designated locations within the specified time.
    It can be found that the strength of Chinese herbal medicine enterprises is becoming more and more important.
     
      In the past, due to low market barriers and serious disorganization of operators, data shows that the top five Chinese herbal medicine decoction pieces companies have a market share of less than 5%.
    However, as the policy and the market have higher and higher requirements for Chinese herbal medicine decoction pieces, some small and medium-sized Chinese herbal medicine decoction pieces enterprises will gradually withdraw from the competition, and the market concentration will gradually increase.
     
      Taking the high requirements of the 2020 edition of the Pharmacopoeia on pesticide residues as an example, this will increase the cost of Chinese herbal medicine decoction pieces.
    Race Bo blue freelance writer author, in
    medicine industry, drinking alone tells tournament next month veteran blue cypress, because the relevant equipment testing Chinese herbs, Chinese Herbal Medicine 33 valuable pesticide residues, only the quality of temperament, LC-quality two kinds of imported equipment It takes more than 3 million yuan to purchase, plus the corresponding laboratory facilities, staff salaries, daily maintenance and other expenses, which are not affordable by ordinary small and medium-sized pharmaceutical companies.
    Herbs medicinal herbs
     
      If testing is conducted through a third-party organization, it will also be a flaw for the weaker companies.
    In the past, Chinese herbal medicine decoction pieces companies could purchase in small batches, but as the cost of testing increases, companies must buy in large quantities when it is cost-effective.
    Because the larger the amount, the average test cost per kilogram will be lowered.
    Regardless of the size of the decoction piece enterprises, the number of varieties sold is actually the same.
    However, compared with large companies, small companies obviously do not have the financial strength and storage conditions to purchase a large amount of each product, so small and medium-sized enterprises will gradually be eliminated in the future.
     
      In addition, the problem of pesticide residues is also a headache for suppliers.
    The month alone tells Cyberland that the Chinese medicine decoction pieces purchased by the hospital must meet the requirements of the pharmacopoeia, so the supplier is required to control the quality of the product.
    If a certain item is spot-checked by the China Food and Drug Administration that does not comply with the pharmacopoeia, all the responsibilities incurred will be borne by the supplier.
     
      For example, the supplier has already inspected the product before it is delivered.
    Traditional Chinese medicine is different from Western medicine, so it is difficult to unify the quality.
    Different lengths of the same piece of land may be different.
    The pesticide residue did not exceed the standard during the company's inspection, but it was found unqualified at the terminal to be required to return or be punished.
    This situation may exist.
    Therefore, under the high requirements of the new pharmacopoeia, hospital suppliers will also face great pressure.
     
      Yuexia alone thinks that from the perspective of future trends, whether it is vegetables or Chinese medicinal materials, the problem of pesticide residues is an unavoidable problem.
    Uncontrolled flooding will definitely not work, but this requires a transition period.
    For example, there was a problem of sulfur fumigation in traditional Chinese medicine in the past.
    After the 2015 edition of the Pharmacopoeia required sulfur residue limits, companies used various methods to improve it.
    Nowadays, there are almost no sulfur in traditional Chinese medicines on the market.
     
      On the whole, although the traditional Chinese medicine industry will face a period of pain, it will definitely develop in the direction of higher quality and stronger in the future.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.
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