China Officially Announces the Implementation of Two-invoice System for High-value Consumables

  • 2018-03-22
The much-awaited two-invoice system will be adopted for medical consumables, firstly for high-value consumables.

On March 20, the Notification on Strengthening Abolishing the Method of Making up Medicine with Drugs and Continuously Deepening Comprehensive Reform of Public Hospitals (GWTGF[2018] No.4) (hereinafter referred to as the Notification) was released on the official website of National Health and Family Planning Commission (NHFPC).

The Notification, issued jointly by the NHFPC, Ministry of Finance, Ministry of Human Resources and Social Security (MOHRSS), NDRC, State Administration of Traditional Chinese Medicine and State Council Medical Reform Office, finalized the key areas and essential process for deepening medical reform since 2018.

The Notification specified that the two-invoice system for purchase and sales of high-value medical consumables shall be implemented step by step.

Following the Work Focuses on Special Correction of Harmful Practices in Medicine Purchase, Consumption and Medical Service in 2016 issued jointly by 9 Ministries and Commissions, a national initiative to push forward the two-invoice system for consumables in health reform pilot provinces and cities, China once again prioritize the issue on its agenda.

After nearly two years, the state reiterated the implementation of the two-invoice system for consumables and issued the notification in the name of Department of System Reform, NHFPC. It signaled a nationwide reinforcement of two-invoice system for consumables since this year.

The Notification specified that the two-invoice system was designated for high-value consumables, which, by definition, included those relating to vascular intervention, non-vascular intervention, orthopedic implants, neurosurgery, electrophysiology, pacemakers, extracorporeal circulation and blood purification, ophthalmology materials, and stomatology according to the Ministry of Health.

The Notification also stated that national demonstration cities and counties (cities, districts, banners) should intensify reforms while taking the lead to make breakthroughs in key areas and essential process. It is expected that the two-invoice system for high-value consumables will be piloted step by step in medical reform demonstration cities and counties.