Shenzhen will pilot Group Purchasing Organisations (GPO) in the pharmaceutical supply system, the city government announced.
According to the announcement, officials from local health, finance, drug quality supervision and medical insurance management agencies will together select a pharmaceutical retail company as a third-party entity to carry out pharmaceutical group purchasing work for hospitals, says Caixin. Currently, the role is filled by provincial governments across China, Caixin explains, who negotiate prices with pharmaceutical manufacturers on behalf of public hospitals. By designating the task to a market entity who is allowed to profit from the transactions, it says, the move will help lower pharmaceutical prices at hospitals.