A new notice on centralized procurement of medical equipment for public medical and health institutions has been officially released with an interpretation. The rules establish a three-tier departmental procurement system at the national, provincial, and municipal levels, and for the first time set a timeline for the formulation and implementation of procurement catalogs at each level.
Under the arrangement, all public medical and health institutions nationwide must conduct departmental centralized procurement for medical equipment listed in the respective catalogs of the national, provincial, or municipal levels. The authority to formulate catalogs is delegated accordingly: the National Health Commission formulates the national catalog and files it with the Ministry of Finance for implementation; provincial health administrative departments formulate their own catalogs and file them with finance departments at the same level; municipal-level catalogs require prior consent from the provincial health authority and then filing with finance departments per local regulations.
Regarding tiered procurement, Class A large medical equipment, especially high-end radiotherapy devices, will continue to be procured by the National Health Commission under the national catalog. However, equipment that is highly customized, requires supporting infrastructure construction, and must be registered on a per-unit basis—mainly heavy ion and proton radiotherapy systems—is temporarily excluded from centralized procurement. The authority for Class B large medical equipment falls to the provincial level. The notice specifies that PET/MR, PET/CT, laparoscopic surgical systems, and conventional radiotherapy devices are all Class B and are to be procured by provincial health departments. Other medical equipment involving large capital investment and insufficient market competition will also be gradually included in provincial catalogs.
For equipment not covered by the national and provincial catalogs, municipal health authorities may, based on the principles of prudence and starting with easier items, develop their own centralized procurement catalogs and organize procurement.
The actual execution of centralized procurement is assigned to selected implementing agencies. Health departments may choose one institution from their affiliated units with strong professional competence and sound internal controls, or designate a government centralized procurement agency. Public medical institutions, as the entities responsible for procurement demand management, must submit procurement demands as required. The implementing agency then scientifically classifies and divides procurement packages based on those demands, and may carry out procurement itself or commission a procurement agent.
On the timeline, all localities must complete a round of centralized procurement for Class B large medical equipment by the end of 2026. By the end of June 2027, at least one municipality must be designated to pilot centralized medical equipment procurement and complete one procurement round.
The work orientation emphasizes quality and value, requiring a lifecycle cost management approach. This means considering not only one-time procurement costs such as quality and price, but also long-term costs like consumables and after-sales maintenance services when setting review criteria. The notice calls for scientifically defining review standards, reasonably selecting review methods, strengthening scrutiny of abnormally low bids, and preventing destructive competition, thereby shifting the goal from mere cost savings to comprehensive performance of quality and value. Additionally, a centralized procurement filing database for high-value medical equipment will be established, integrated with government procurement information disclosure channels, to build a nationwide price transparency mechanism and ensure the openness, fairness, and impartiality of procurement activities.
Localities are required to raise awareness, strengthen overall planning, enhance implementation safeguards, rigorously supervise and manage, and properly interpret the policy to ensure a smooth and orderly rollout.