The top three in many places have stopped the consumables SPD project!
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The top three SPD projects are frequently scrapped!
Source: Medical Device Distributors Alliance
The top three SPD projects are frequently scrapped!
On July 31, the Chinese government procurement network issued the "Announcement on the Scrapping of Medical Consumables (Including Reagents), Medicinal Materials Smart Supply Chain (SPD) Services and Centralized Distribution Project of Ordos ** Hospital (Ordos ** Research Institute)".
Founded in 1979, Ordos ** Hospital is a national tertiary first-class Mongolian general hospital integrating Mongolian medical treatment, scientific research, teaching and Mongolian medicine preparations. The hospital is set up as one hospital and three departments, with a total construction area of 63,112 square meters.
On August 9, the intelligent management platform of medical consumables and the in-hospital distribution service (SPD) project of Yangzhou No. 3** Hospital terminated the procurement for the same reason.
Further on, there are Jilin Provincial Hepatobiliary Hospital, Zhuhai People's Hospital, Zhoukou Central Hospital, Anning Medical Community and Wenshan Compact Medical Community.
In July last year, the National Health Commission and nine departments jointly issued relevant documents to launch a new round of centralized rectification of corruption in the pharmaceutical field across the country. The SPD system can realize the traceability of the whole process of circulation and enhance the transparency of circulation links, which was once considered an effective way to solve medical corruption.
However, as more and more hospital SPD projects have been notified due to the lack of supervision, SPD projects, which are regarded as anti-corruption "sharp weapons" and are contrary to their core concept of refined management, have also begun to attract the attention of multiple regulators.
The new SPD model has sprung up, and giants such as Sinopharm and China Resources have been making great progress
According to the open source securities research report, as of October 2022, tertiary hospitals accounted for 76% of the public hospitals that carried out medical device SPD projects. In 2022, the penetration rate of medical device SPD projects in public hospitals across the country will be about 5.5%.
The SPD market has a large space for future development, and the scale is expected to reach 13.5 billion yuan in 2025.
In the fast-growing SPD market, according to the statistics of the Medical Device Supply Chain Branch of the China Federation of Things, 87% of the SPD projects are currently operated by medical device commercial enterprises (China Resources, Sinopharm, etc.), which are dominated by national commercial companies and local regional leading companies.
For example, a giant of Sinopharm will account for a terrifying 41% of the SPD projects of medical devices in the first three quarters of 2023.
Data source: China Federation of Medical Device Supply Chain Branch
Below this, we see two extreme routes. On the one hand, large enterprises are "singing all the way", covering the consumables procurement and distribution market of several hospitals in the next 3-5 years; On the one hand, small and medium-sized enterprises and dealers have lost their competitiveness and have not been able to compete for a large number of projects......
However, a commercial company that integrates material management and management, and controls both supply and procurement business, is a potential internal control risk maker for hospitals, which may affect the hospital's procurement autonomy, kidnap the procurement business, and weaken the management role.
This has also led many people in the industry to worry that medical device commercial companies under the SPD model "act as both referees and athletes", forming unfair commercial competition.
This is not an unfounded worry, but a real hidden danger.
There are many problems behind the rapid expansion! Dispatched in many places, a large number of hospital SPD projects were "perspectived"
Previously, in the medical device product quality inspection notice of the Shanxi Provincial Food and Drug Administration, many hospitals were notified of the lack of supervision due to acting as a shopkeeper under the consumables SPD.
In addition, the Fifth People's Hospital of Ganzhou City issued the "Notice on the Progress of Inspection and Rectification", pointing out that the hospital's consumables SPD project involved the problem of "unified party".
Under the consumables SPD project, the hospital and its partners share information on material requirements, material supply, hospital approval, etc.
However, excessive information sharing is very likely to lead to the leakage of information systems (such as the unified party) in hospitals, which will lead to related integrity risks and management crises, and derive a more insidious corruption.
Therefore, in the bidding announcement of some large-scale tertiary hospital SPD projects such as the First Hospital of Xi'an City and the First Affiliated Hospital of Sun Yat-sen University, it is clearly required that the bidder shall not have a business relationship with the tenderer.
The selection of the top 100 hospitals undoubtedly provides a model for medical institutions to standardize hospital management, and becomes a vane for medical institutions to choose SPD.
It puts forward clear restrictive requirements for SPD bidding information, and also sends a signal to the outside world: there are drawbacks to a certain extent in the participation of pharmaceutical and medical device commercial circulation companies in the management of hospital SPD, and the third-party SPD that returns to the essence of service is more in line with the development needs of large hospitals.
Of course, in addition to the stricter supervision in the hospital, the local audit bureau has also begun to join the rectification action.
On July 15, the Anhui Provincial Audit Office issued the article "Fuyang Hospital Affiliated to Anhui Medical University: SPD Service Tracking Audit Helps Refined Management of Consumables", pointing out that in the SPD service audit of Fuyang Hospital Affiliated to Anhui Medical University, it was found that there were problems such as loopholes in accounting logic, poor functional application effect, discrepancies in system accounts, and inaccurate data.
At the same time, the Chibi Municipal Audit Bureau also emphasized the control of SPD medical consumables in the audit of the economic responsibility of tertiary hospitals, and helped the refinement of consumables management by reviewing bidding, bills, inventory, etc.
It is undeniable that under the strong drive of policies such as DRG/DIP payment reform, the SPD model is the preferred path for medical institutions in mainland China, especially tertiary hospitals, with its significant advantages of refined management.
However, it should not be ignored that the loopholes exposed by the current SPD project are like a multi-prism, reflecting many problems such as system implementation, data supervision and operational efficiency, which also need to be solved as soon as possible.
Otherwise, SPDs, which are proud of fine management, are also likely to be alienated into a new type of 'monopoly'......
Source: Medical Device Distributors Alliance