Mass Cancellation of Medical Consumables Distributors' Qualifications in China: Johnson & Johnson, Lepu, Jiuzhou Tong Among Affected Giants

Mass Cancellation of Pharmaceutical and Device Companies' Distribution Qualifications Reappears!

Recently, Inner Mongolia AutonomousRegional Pharmaceutical Procurement Network releases news,Plans to revoke the distribution rights of 810 pharmaceutical and device distributors in the Erdos region at one time.

It is reported that this is the decision made by the Ordos Medical Security Bureau after evaluating the online distribution of medicines and medical consumables by distribution companies in 2023.

Among these 810 distributorsInvolving 739 medical consumables centralized procurement and distribution enterprises,Medicine71 centralized procurement and distribution enterprises.The reason for cancellation is: Having been listed for a full year, and not participating in online transactions with medical institutions in 2023, and not establishing relationships, etc.

From the public list,IncludingJohnson & Johnson, Lepu, ChinaMedicine, Topical Medicine,Jiuzhou Tong, Chongqing Pharmaceutical, etc.GiantSeveral subsidiaries under its umbrella are also among those being removed:

▼List of Companies Whose Qualifications for Drug and Medical Consumables Distribution Have Been Revoked▼

Click the profile below and send "428"View the full list"↓↓

In fact, this is not the first move within the Inner Mongolia Autonomous Region recently.Clearing Consumables Supplier Delivery Qualifications：

The large-scale cleanup of distribution qualifications is not only happening in Inner Mongolia but is also being vigorously advanced in multiple provinces.

InZhejiang ProvinceFor example, the Zhejiang Provincial Medical Insurance Bureau this yearSince the beginning of the year, it has been releasedFour batchesList of Dismantled Relationships with Consumables Distribution Companies, Totaling Four Batches2487 Groups of Medical ConsumablesDistribution relationship, involving consumables categories reachingMore than a dozen categories。

Led by Inner Mongolia and Zhejiang,The series of actions by the medical insurance department are not coincidental but a signal that the distribution relationship has entered a stage of normalized governance.Beyond these two places, more provinces are currently following up and implementing intensively...

On April 23, the Fujian Provincial Medical Security Bureau issued the "Fujian Province Drug and Medical Consumables Supply Performance Management Measures" notice.Effective from June 1, 2024, valid for 5 years.

This document applies to: listed/distribution enterprises participating in the supply and distribution activities of drug and consumable procurement (including bulk procurement) in the provincial procurement subsystem. It explicitly states,The performance of distribution enterprises must be evaluated on a monthly basis!

All consumables distribution enterprises due toStocking delays and other self-caused reasons leading to out-of-stock situations, ineffective handling of product distribution issues reported by medical institutions, and penalties imposed by drug regulatory authorities due to quality problems in the product distribution and storage环节.，All become deduction items.Once the examA score below 60 carries a risk of penalty, and serious cases will result in the cancellation of delivery qualifications!

Coincidentally, in August last year, the Datong Medical Insurance Bureau in Shanxi Province released the "Evaluation Plan for Pharmaceutical and Consumable Distribution Enterprises on the Datong Medicine and Consumable Procurement Platform," which stipulated:If pharmaceuticals and consumables distribution enterprises have the following 11 situations, their distribution qualifications will be revoked.

Undoubtedly, as the centralized procurement of consumables and reagents accelerates across China, along with the implementation of new regulations in various regions, a major test for distributors has begun. The next steps involve streamlining the distribution relationships of medical consumables, eliminating a large number of previously unqualified distribution companies, and increasing the concentration of distribution!