Implant collection is closer.
On April 25, Sichuan Province issued the “Notice on Carrying out the Second Round of Information Collection of High-value Oral Medical Consumables Products”, stating that due to the receipt of some “manufacturing enterprises’ Application”, the Provincial Drug Recruitment Center decided to open another round of information reporting for dental implant-related consumables.
Source: Sichuan Province Pharmaceutical Equipment Centralized Purchasing and Pharmaceutical Price Supervision Platform
As we all know, Filling out product information is a precursor to centralized procurement. In November 2021, Sichuan Province has issued a notification for filling in the information of consumables such as implants and repair abutments.
Sichuan is the leading province for the national centralized procurement of dental implants. The Sichuan Provincial Medical Insurance Bureau stated in March this year that it will lead the organization to carry out the inter-provincial procurement of oral implants in 30 provinces.
Nominally, it is “inter-provincial” centralized procurement, but in fact it covers 30 provinces, which is basically the national centralized procurement.
Prior to this, no matter whether it is inter-provincial centralized procurement or national centralized procurement, there is no need to repeatedly declare information.
Sichuan did not disclose the participating companies in the first report. According to Sichuan officials, there may be some companies that did not participate in the first report, and now they have changed their minds.
This may mean that there will be more participants in the collection of dental implants, and the price reduction will be very competitive.
Enterprise active declaration
Different from the past, this time the filling in of dental implant-related product information is actually driven by the enterprise. Sichuan Province said that because some “applications from production enterprises for adding product information” were recently received, the relevant departments started the work again, and all declarations must be completed before May 7.
The Health Knowledge Bureau noticed that the product information declaration scope given by Sichuan Province is oral implants, prosthetic abutments, as well as implant prosthetic accessories such as transfer rods and substitutes, which is basically the same as the first time. requirements are consistent.
Because there is no newly-reported product, new companies should participate in the second report.
In November last year, although the community’s voice for the collection of dental implants was very high, only some areas have made some attempts sporadically. The dental industry has a very high degree of privatization, and entering a public hospital is not the only way out. Implant manufacturers who are used to making “big profits” in the dental industry are not very motivated to participate in centralized procurement.
This is also one of the reasons why the dental implant collection has been buzzing for nearly a year, but no action has been seen.
Since the beginning of 2022, the policy level has begun to set the tone for dental implant collection. On January 10, the executive meeting of the State Council decided to carry out centralized procurement of medicines and high-value consumables on a regular basis, and to carry out national and provincial centralized procurement of products such as dental implants, orthopaedic consumables, and drug balloons that are “concerned by the masses”.
According to Chen Jinfu, deputy director of the National Medical Insurance Administration, as early as February this year, the plan for the collection of dental implants has been “basically mature”. The Sichuan Provincial Medical Insurance Bureau also said in March that it would lead the organization to carry out the inter-provincial procurement of oral implants in 30 provinces. Once implemented, it will be the largest inter-provincial centralized procurement alliance in the history of China.
In the same period, more and more provinces are taking action. At the end of March, following Sichuan, Shanxi, Ningxia and other regions, Jiangsu Province also joined in, requiring “all public hospitals that carry out oral implant surgery” in the province to start reporting.
A company that was originally “waiting and watching” suddenly contacted the recruitment center, possibly feeling the change in wind direction.
Or will benefit domestic production
Sichuan Province organized the centralized procurement of dental implants in 30 provinces across the country, and the reporting stage is different. It is reported by the enterprise.
In the past, the centralized procurement of medicines and consumables was reported by the terminal public hospital. However, many dental implant operations are carried out in private hospitals. If public hospitals are also asked to report the amount, it is likely to result in the estimated purchase volume is low. It is the enterprise that understands the market best, and the quantity quoted by the enterprise itself is the most real.
The “2020 China Oral Medical Industry Report” jointly released by Meituan Medical and other institutions shows that the number of domestic dental implants has reached about 4.06 million in 2020, which is the fastest growing dental implant in the world one of the markets.
However, most of the implanted teeth are imported.
Guosen Securities data shows that European, American and Korean manufacturers such as 3M, Straumann, Dentsply and Berger dominate the global dental implant market, of which the Straumann family exclusively enjoys the 25% of the market.
Source: Guosen Securities
In China, Odentate, Denton and Straumann foreign companies account for nearly 80% of the dental implant market. In contrast, the domestic dental implant industry started relatively late. Although brands such as Aierchuang and Aidite are slowly “rising”, the overall recognition and market share of “domestic products” are still not high.
Previously, a number of doctors have told the Health and Knowledge Bureau that the quality of domestic implants is “much inferior to imported products”.
But domestic products also have an advantage over imported products: cheap. According to Guohai Securities, the current prices for dental hospitals to purchase implants from domestic, Korean and European and American brands are 400 to 600 yuan, 500 to 800 yuan, and 1,800 to 2,300 yuan, respectively.
According to the general idea of ”substituting domestic products” for centralized procurement, the enthusiasm for domestic products to participate in centralized procurement should be the highest, while large foreign-funded enterprises are generally squeamish. This is a phenomenon that can be observed in several centralized drug collections.
And this time, Sichuan accepts the second report of the enterprise, and it is very likely that foreign-funded enterprises are ready to participate in the centralized procurement competition.
In August 2021, the Ningbo Municipal Medical Insurance Bureau requested that the price paid for a dental implant range from 3,000-3,500 yuan when it established the reimbursement catalog for dental implant brands. According to this calculation, after adding the medical service fee and dental crown fee, the price in Ningbo can cover most of the dental implant operations.
Data from the National Medical Insurance Bureau shows that the average drop in the first 6 batches of medicines is around 53%, and the average drop in consumable products such as heart stents and artificial joints has reached more than 80%. For an imported brand that can easily sell for more than 2,000 yuan for a single implant, it may be more painful to cut the meat.
Dental implants are expensive, in part because of the consumables. Guohai Securities estimates that the cost of diagnosis and treatment and consumables for an implant is roughly 25% and 75%. Implants account for more than 50% of the 75% of consumables costs. That is to say, for an implant that sells for 15,000 yuan on the consumer side, the cost of the implant will account for more than 5,000 yuan, and the cost is usually only a few hundred yuan.
However, dental implants are not cheap. To really reduce the total price of dental implants, the medical insurance and health departments need to work hard to regulate the cost of surgery.
Text | Surin Operations | Twenty-Three
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