China's Three Ministries Issue Landmark Policy for Nationwide Medical Device Centralized Procurement

In a historic move that signals a paradigm shift in China's healthcare procurement landscape, the National Health Commission (NHC), the National Administration of Traditional Chinese Medicine (NATCM), and the National Disease Control and Prevention Administration jointly released the "Notice on Further Improving the Centralized Procurement of Medical Equipment in Public Medical and Health Institutions" on July 14, 2026.

This is the first-ever systematic deployment of centralized procurement (VBP/bulk procurement) for medical equipment across China's public healthcare system, marking a direct expansion of the national volume-based procurement model from pharmaceuticals and consumables into the high-value medical device and equipment sector.

Key Policy Highlights

1. Three-Tier Centralized Procurement Structure (National–Provincial–Prefectural)

The policy establishes a three-tier framework:

l National Level: The NHC will continue to organize centralized procurement of Category A large-scale medical equipment, primarily consisting of high-end radiotherapy devices (with the exception of heavy-ion/proton radiotherapy systems, which remain excluded due to their high customization requirements).

l Provincial Level: Provincial health authorities will be responsible for Category B equipment — including PET/MR, PET/CT, laparoscopic surgical robots, and conventional radiotherapy equipment. Provinces must complete at least one procurement round by end of 2026.

l Prefectural Level: Municipal-level health authorities to progressively implement procurement for other equipment. Each province must have at least one pilot city complete a cycle by June 2027.

2. "Quality First, Fair Price" — Anti-"Involution" Competition Framework

The policy mandates shifting away from pure price competition toward balanced evaluation of quality, price, and lifecycle service costs. Authorities must prevent "involution-style" price wars and adopt total-cost-of-ownership approaches.

3. National High-Value Equipment Registry Database

A national registry database will be established to enhance price transparency and data-driven procurement decisions across all public institutions.

4. Strengthened Anti-Corruption and Compliance Measures

The policy ties procurement reform directly to anti-corruption efforts, mandates strict compliance with hospital expansion controls, and prohibits debt-financed equipment purchases.