centralised medicine procurement
医药集中采购 yīyào jízhōng cǎigòu

With few exceptions, hospitals buy drugs from a list of items approved by their provincial government. Bidding for inclusion is managed by a procurement agent­­­­, usually a government-established firm. Bidding competition and price ceilings help drive down prices. Manufacturers and hospitals are, however, adept at finding ways to collude in price-fixing after the bidding winds up.
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