Research on Centralist Tender for Drugs Purchase in China

Since 2000, our country has carried out the Centralist Tender for Drugs Purchase (CTFDP) in all medical institutions in order to solve many problems, such as the complex purchasing processes, the high transaction costs and drugs prices, and also to rectify commercial briberies in Chinese medical circulation. So the promotion of CTFDP has implemented the intelligent tendering processes in use of Internet, enhanced its transparency and improved the efficiency for medical procurement to some extent. However, there still exist many problems in drugs tendering system, such as the evaluating systems and assessing methods in CTFDP, which not only influence its impartiality and objectivity, but also result in other serious consequences, such as increasing too much heavy burdens on medical enterprises and harming interests for majority medical institutions. Therefore, more and more communities begin to oppose the CTFDP mode and make proposal to abolish this system. In this article, the author will take Beijing Haihong E-Commerce Co., Ltd as an example, not only analyze pervious problems and deficiencies in this system by introducing Haihong CTFDP system, but also construct a new network centralized purchasing model based on sealed reverse auction in order to solve these problems in nowadays tendering system.