The recently announced China Medical Device Procurement Public Service Platform (CMP) is set to transform the medical equipment market in China. Benjamin Niu (lead analyst for the Chinese medical device market at IHS) attended the 2015 Health Industry Summit (tHIS) in May this year. Opening to crowds of over 210,000 visitors from over 150 countries, tHIS is the largest healthcare show in Asia. And the CMP was a clear focus.
Niu attended the press conference of the national public sourcing platform for medical devices during tHIS. The press conference was held by CAME (China Association of Medical Equipment), Reed Sinopharm Exhibitions Co. Ltd. and CMP (China Medical Device Procurement Public Service Platform).
According to the leader of this platform, Mr. Lin Chubao, CMP was set up with support from central government departments, NHFPC, MIIT, SFDA and SIC. CMP will aim to set up a brand-new database including the suppliers, products, barcodes, qualifications, catalogues, technical parameters and history bid prices. This comprehensive medical device database together with the online procurement system, electronic commerce system, information service system and financial service system, will significantly improve procurement processes for the Chinese public healthcare system. All procedures including trading, bidding, closing, financing and supervising will be transferred to online services to better monitor and regulate the medical device market.
Niu believes that the CMP is another positive step from the Chinese government to support local medical device suppliers. From 2014, the Chinese government started to indicate further support for local brands by encouraging public hospitals to purchase medical devices from local suppliers. Medical imaging equipment including X-ray and ultrasound and IVD equipment were the first segments receiving support from local governments. The first selection catalogue of approved local medical suppliers was published to the public in 2014. Niu believes that this is a game changer in the Chinese medical device market, “previously, the high-tech, high-cost medical equipment market has been monopolized by multinational suppliers.” Niu said, “The selection program together with the CMP will change this, promoting the development and application of local medical equipment.” From the press conference, the CMP will start at regional level and extend to the country level in 3 to 5 years.