National Healthcare Security Administration: Safeguarding the fundamental system of centralized procurement from corruption by introducing a "leniency for first disclosure" mechanism.

On September 20th, the National Drug Joint Purchasing Office announced the 11th batch of national centralized drug procurement documents. Regarding the "anti-collusion" principle of the 11th batch of centralized procurement, relevant officials from the National Medical Insurance Administration stated that collusion not only affects the true and false prices of one or two selected drugs, but also undermines the foundation of the system of centralized volume procurement. This batch of centralized procurement further improves measures to prevent collusion. Firstly, continuing to restrict bidding from affiliated companies. For companies with close relationships in terms of equity, management, transfer of registration certificates, and production outsourcing, they will be treated as one entity during bidding. Secondly, introducing a "lenient reporting" mechanism. The first company to provide evidence of collusion and the first company to voluntarily admit involvement in collusion during the investigation process may receive lenient treatment according to law and regulations to break the alliance of interests between colluding companies. Thirdly, increasing efforts to prevent and crack down on collusion. For companies involved in collusion or bid-rigging during the national centralized drug procurement, in addition to being included in the "violation list" according to the procurement documents, they will also be subject to the strictest penalties according to the medical price and procurement credit evaluation system.