The State Council General Office released a guideline on Feb 28 aimed at perfecting the centralized medicines procurement of public hospitals in China.

The guideline is an essential part of the country’s efforts to reform its healthcare system.

And the move aims to boost reforms concerning public hospitals, updates of pharmaceutical policies and perfection of the system of medicines supply.

Bidding and purchasing will be categorized in accordance with the situation concerning supplies of required medicines, which will “better motivate pharmaceutical enterprises” and “better engage the hospitals” in the procedures.

Efficiency of payment and delivery procedures will also be improved, procurement platforms at the provincial level will be expanded — and the guideline will also lead to better standardization and information sharing concerning purchases of medicines.

Additionally, procurement of all medicines — except traditional Chinese medicine — must be conducted on the provincial-level platforms.

Release of data and strengthened governmental oversight will increase transparency in all the procurement procedures.