How will public hospital reform affect the medical device industry?

On August 7, the National Health and Family Planning Commission held a press conference today on the progress of work related to public hospital reform. The progress of the comprehensive reform of public hospitals in the provinces and the focus of the next step were announced.

Progress in the reform of Chinese medicine machinery in various provinces

1. In terms of centralized procurement of consumables, all localities are studying and formulating a new round of centralized procurement of consumables in accordance with the “Guiding Opinions of the General Office of the State Council on Improving the Centralized Procurement of Drugs in Public Hospitals” (Guo Danfa [2015] No. 7). The request will be implemented uniformly in the middle and late November of this year.

2. Jiangsu Province collects all the top ten high-value medical consumables stipulated by the state; more than two-thirds of the counties (cities) in the province use information technology to establish regional inspection, pathological diagnosis, medical imaging and other centers. Telemedicine services, vigorously promote mutual recognition of inspection and inspection results;

3. At the end of 2015, Jiangsu Province should fully implement the government's six major investment policies for public hospital infrastructure construction and large-scale equipment purchase. By 2017, the government's health investment at all levels of the province will reach 100 billion yuan, close to the 56 billion yuan in 2014. Some time.

4. Qinghai Province will include all medical consumables (including high-value consumables, general consumables, and inspection reagents) in public hospitals in the provincial centralized procurement scope, effectively reduce the purchase price of consumables, and leave room for adjusting the price of medical services;

5. Zhanjiang City, Guangdong Province has comprehensively promoted the integrated management of medical and health services in counties and towns, and county-level hospitals have unified management of personnel, medicines and consumables in township hospitals.

The next step of work:

At present, 1463 counties (cities) have started reforms, accounting for 74.9%, of which 13 provinces have covered all counties (cities); a total of 3,297 county-level public hospitals have started reforms, accounting for 78.3%, of which 61 cities have introduced implementation plans. 764 city public hospitals have initiated reforms. The reform has entered the deep water area, and the focus of the work in the second half of the year will fully promote the key reform tasks and ensure the realization of the "two comprehensive push" requirements, that is, the comprehensive reform of county-level public hospitals will be launched nationwide by the end of October 2015. At the end of December, comprehensive reform of urban public hospitals was launched in 100 pilot cities. In this process, efforts were made to break through the comprehensive reforms of drug-filling mechanisms, service price adjustments, and medical insurance payments in public hospitals, and to construct a medical service system with a rational layout, division of labor, and a grading diagnosis and treatment.

First, good domestic medical equipment

According to the timetable for reform, 14 years of comprehensive reform of county-level public hospitals has covered more than 50% of counties (cities), and will be fully opened before the end of October 2015. Medical Device Innovation Network believes that the comprehensive reform of county-level public hospitals is an important part of medical reform, and it is a key link to alleviate the "difficulty in seeing a doctor and expensive medical treatment". With the rollout of the reform of county-level public hospitals, it will greatly benefit domestic listed medical equipment companies.

At the same time, the Medical Device Innovation Network believes that with the continuous advancement of the state's reform of public hospitals, relevant reform rules will continue to be introduced, and the dividends on medical service policies will be released continuously. The primary medical market is growing rapidly, and related medical devices and third-party medical service companies will also benefit, such as Hejia shares and Dean Diagnostics.

Second, the medical equipment market continues to expand

Gradually canceling the drug add-on and increasing the profitability of medical services means that medical devices will be lax in policy red packets. While reducing the proportion of medical expenses, medical reform is also encouraging multi-directional development. For example, in introducing the reform of public hospitals in Jiangsu Province, it is mentioned that social capital should be introduced. In addition, this time again clearly pointed out: "Two or more counties (cities) in the province use information technology to establish regional inspection, pathological diagnosis, medical imaging and other centers, carry out telemedicine services, and vigorously promote mutual recognition of inspection results. ". In other words, the entire market for medical devices is expanding, and the proportion of medical devices used is constantly increasing under the encouragement of policies such as the reform of public hospitals.

Third, the medical equipment industry has a broad development space

From the work of ensuring the realization of “two comprehensive pushes” in the second half of the year, in 2015, China will comprehensively promote comprehensive reform of county-level public hospitals, and at the same time further expand the pilot reform of urban public hospitals. By 2017, urban public hospitals will be integrated. The reform pilot has been fully promoted, and the reform of China's medical system will be comprehensively deepened in the next few years. With the improvement of people's health awareness and the aging of the population, the market for medical devices in grassroots and public medical institutions is vast, and the market for home medical devices will also grow rapidly.

Nowadays, the reform of public hospitals has entered the deep water area. It can be seen from the current over-weighting of policies that the positive attitude of relevant departments will inevitably push the reform of public hospitals to a more in-depth level. Since 2015, with the advent of the Internet medical (selling drugs) policy, the rapid advancement of pilot projects on stem cells and gene sequencing , especially the rapid roll-out of public hospital reform pilots, including smart medical, genetic sequencing and other industries will bloom everywhere.

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