An east wind that drives a wave of medical device renewal finally comes.
Up to now, the medical equipment renewal projects in several provinces have been ready for national and local financial supports.
The driving force behind such supports finally comes.
The Notice on Implementing the Government-funded Interest Subsidy Policy for Equipment Renewal Loans (hereinafter referred to as the “Notice”, attached hereto in full text) jointly released by the Ministry of Finance, the National Development and Reform Commission, the People's Bank of China and the National Financial Regulatory Administration was published on the website of the Ministry of Finance yesterday.
According to the Notice, where the business entity implements the equipment renewal in accordance with the Notice of the State Council on Printing and Issuing the Action Plan for Promoting the Large-scale Equipment Renewal and the Trade-in of Old Consumer Goods (GF [2024] No. 7), which is included in the list of alternative items determined by relevant authority, and the loan it receives from a bank can be supported by the equipment renewal-related reloan from the People’s Bank of China, the central government should offer an interest subsidy to its bank loan.
Where the loan that the business entity receives from a bank is eligible for reloan reimbursement, the central government should offer a 1% interest subsidy for such loan. The interest subsidy should come into effect from the date when corresponding loan is paid to the supplier’s account, the term of interest subsidy should not exceed 2 years.
Zhao Chenxin, Deputy Director of the National Development and Reform Commission, mentioned that the large-scale equipment renewal and the trade-in of old consumer goods would definitely be supported by the investment fund from central budget and the central financial fund in a powerful manner.
The central government-funded interest subsidy policy will leverage the entire potential market of medical devices, a big pie to be unveiled.
Locally, several provinces have already announced a financial support program.
Fujian Provincial Development and Reform Commission issued the Letter of Fujian Provincial Development and Reform Commission on Approving the Feasibility Study Report and Preliminary Design of Medical Equipment Renewal Project of Provincial High-level Hospitals in Fujian Province, according to which 179 pieces (sets) of equipment was planned to be renewed and 184 pieces (sets) to be phased out, and the budgetary estimate of total project investment would be CNY 758,960,900.
Guangdong Provincial Development and Reform Commission issued the Public Announcement Before the Approval of Feasibility Study Report of Equipment Renewal Related Projects in Medical and Health Field in Guangdong Province, according to which the total investment would be CNY 5,393,449,700, a total of 2,171 pieces (sets) of equipment was proposed to be purchased, and the investment from central budget would account for 44.8% of the total.
According to the incomplete statistics of Saibailan Devices, several provinces including Hebei, Anhui, Guangdong and Fujian have already announced their specific demand for medical equipment renewal, while some other provinces and regions have not publicly announced their demands on the website.
Recently, Hebei Provincial Development and Reform Commission and other three departments have jointly printed and issued the Action Plan for Promoting the Equipment Renewal in Medical and Health Field in Hebei Province (see below in full text), and announced the demand for medical equipment configuration in detail.
The primary objectives of Hebei Province are that the equipment investment in medical and health field should increase by above 25% by 2027 when compared with 2023, and the availability of major large medical equipment per million people should basically reach the average level of middle- and high-income countries.
Moreover, the province should pick up the speed to make up for its weakness in high-end medical equipment, continue to improve the conditions of medical equipment at grassroots level, and significantly improve the medical equipment support and emergency response capabilities to cope with major public health and security risks.
In addition to Hebei, Guangdong and Anhui have printed and issued special equipment renewal programs in the medical and health field. Moreover, several other provinces have disclosed their specific renewal scale, as shown below:
As the starting gun fires, it is the moment to determine the destiny of medical equipment enterprises in at least five years.
Source: Saibailan Devices
01
1% central government-funded interest subsidy
For not more than 2 years1% central government-funded interest subsidy
Up to now, the medical equipment renewal projects in several provinces have been ready for national and local financial supports.
The driving force behind such supports finally comes.
The Notice on Implementing the Government-funded Interest Subsidy Policy for Equipment Renewal Loans (hereinafter referred to as the “Notice”, attached hereto in full text) jointly released by the Ministry of Finance, the National Development and Reform Commission, the People's Bank of China and the National Financial Regulatory Administration was published on the website of the Ministry of Finance yesterday.
According to the Notice, where the business entity implements the equipment renewal in accordance with the Notice of the State Council on Printing and Issuing the Action Plan for Promoting the Large-scale Equipment Renewal and the Trade-in of Old Consumer Goods (GF [2024] No. 7), which is included in the list of alternative items determined by relevant authority, and the loan it receives from a bank can be supported by the equipment renewal-related reloan from the People’s Bank of China, the central government should offer an interest subsidy to its bank loan.
Where the loan that the business entity receives from a bank is eligible for reloan reimbursement, the central government should offer a 1% interest subsidy for such loan. The interest subsidy should come into effect from the date when corresponding loan is paid to the supplier’s account, the term of interest subsidy should not exceed 2 years.
Zhao Chenxin, Deputy Director of the National Development and Reform Commission, mentioned that the large-scale equipment renewal and the trade-in of old consumer goods would definitely be supported by the investment fund from central budget and the central financial fund in a powerful manner.
The central government-funded interest subsidy policy will leverage the entire potential market of medical devices, a big pie to be unveiled.
Locally, several provinces have already announced a financial support program.
Fujian Provincial Development and Reform Commission issued the Letter of Fujian Provincial Development and Reform Commission on Approving the Feasibility Study Report and Preliminary Design of Medical Equipment Renewal Project of Provincial High-level Hospitals in Fujian Province, according to which 179 pieces (sets) of equipment was planned to be renewed and 184 pieces (sets) to be phased out, and the budgetary estimate of total project investment would be CNY 758,960,900.
Guangdong Provincial Development and Reform Commission issued the Public Announcement Before the Approval of Feasibility Study Report of Equipment Renewal Related Projects in Medical and Health Field in Guangdong Province, according to which the total investment would be CNY 5,393,449,700, a total of 2,171 pieces (sets) of equipment was proposed to be purchased, and the investment from central budget would account for 44.8% of the total.
02
Renewal Programs Ready in Several Provinces
It is the “Prime Time” of medical equipment market.Renewal Programs Ready in Several Provinces
According to the incomplete statistics of Saibailan Devices, several provinces including Hebei, Anhui, Guangdong and Fujian have already announced their specific demand for medical equipment renewal, while some other provinces and regions have not publicly announced their demands on the website.
Recently, Hebei Provincial Development and Reform Commission and other three departments have jointly printed and issued the Action Plan for Promoting the Equipment Renewal in Medical and Health Field in Hebei Province (see below in full text), and announced the demand for medical equipment configuration in detail.
The primary objectives of Hebei Province are that the equipment investment in medical and health field should increase by above 25% by 2027 when compared with 2023, and the availability of major large medical equipment per million people should basically reach the average level of middle- and high-income countries.
Moreover, the province should pick up the speed to make up for its weakness in high-end medical equipment, continue to improve the conditions of medical equipment at grassroots level, and significantly improve the medical equipment support and emergency response capabilities to cope with major public health and security risks.
Source: Saibailan Devices