Q&A on China Medical Device Volume‑Based Procurement (VBP / 集采)
1. What is medical device volume‑based procurement (VBP)?
VBP is a centralized, quantity‑linked procurement mechanism in which government alliances purchase medical devices in bulk at negotiated prices. Its core purpose is to reduce the cost of high‑value consumables and ensure stable supply by committing large purchase volumes in exchange for lower prices.
2. Which medical device categories are the main targets of VBP?
Based on current national and provincial alliances, the main VBP targets include:
Cardiovascular intervention consumables (e.g., stents, balloon catheters, guidewires)
Orthopedic consumables (e.g., spine implants, trauma fixation products)
Blood purification consumables
Ultrasound scalpel accessories
IVD reagents (e.g., liver function biochemical tests)
3. How widely has VBP been implemented across China?
For high‑value consumables such as stents, alliances already cover 23 provinces. Similarly, the liver function biochemical IVD alliance also covers 23 provinces, marking the first nationwide‑scale IVD VBP.
4. Why did China expand VBP from drugs to medical devices?
The expansion is driven by:
- High clinical usage and cost burden of certain devices
- Large price differences between regions and hospitals
- The need to regulate procurement behavior and reduce patient expenses
- The success of earlier drug VBP pilots
5. How does VBP impact domestic medical device manufacturers?
VBP has accelerated the transformation of domestic manufacturers:
Companies can no longer rely on “high valuation, low revenue” stories
They must demonstrate real R&D strength, product quality, and cost control
Many domestic firms have gained market share from imported brands
Winning VBP bids increases brand visibility and influence
6. Does VBP always lead to drastic price cuts for high‑value consumables?
Not necessarily. For some categories (e.g., spine implants, drug‑coated balloons), the price reduction margin has become more moderate, and in many cases the final price is close to the manufacturer’s ex‑factory cost.
7. What strategic advantages do companies gain by winning VBP bids?
Winning VBP can bring:
Guaranteed purchase volume
Stable cash flow
Higher hospital penetration
Replacement of imported competitors
Long‑term brand strengthening
This is often described as “double gain of reputation and profit” for compliant, competitive manufacturers.
8. How does VBP influence innovation in the medical device industry?
VBP pushes companies to:
Improve R&D efficiency
Strengthen product differentiation
Optimize manufacturing and supply chain costs
Focus on clinical value and real‑world performance
The policy environment encourages high‑quality, cost‑effective innovation, not low‑end price competition.
9. What future trends are expected for medical device VBP?
According to current policy direction:
More high‑value consumables will enter VBP
IVD reagents will continue expanding after the first nationwide alliance
Price reductions will become more rational, not extreme
Market competition will shift toward quality, performance, and cost efficiency
Domestic manufacturers with strong capabilities will continue to grow rapidly
10. What proactive strategies can foreign medical device manufacturers adopt to strengthen competitiveness under China’s VBP?
Foreign manufacturers can enhance their competitiveness by accelerating NMPA product registration, enabling earlier market entry and participation in VBP cycles; developing a multi‑tier product model strategy to serve high‑, medium‑, and low‑level health institutions with differentiated SKUs; localizing production or establishing a “Made in China” manufacturing site to reduce costs and improve supply stability; and building partnerships or joint ventures with capable Chinese companies to leverage local networks, distribution strength, and policy advantages.
