New Regulations on Medical Equipment Procurement: Strict Crackdown on "Abnormally Low Bids" Promotes Industry Healthy Development Policy Background: Addressing the Chaos of Low-Price Competition

The long-standing issue of "abnormally low bids" in medical equipment procurement has finally met with strong regulatory measures. The latest Notice on Pilot Work to Promote Solutions to Abnormally Low Prices in Government Procurement issued by the Beihai Municipal Finance Bureau of Guangxi Province has clearly defined red lines for abnormally low prices, setting a precedent likely to be adopted nationwide.

Four Standards for Abnormal Low-Price Review

The new policy establishes four specific triggers for abnormal low-price review mechanisms:

1. ‌Bid 50% below average‌: When a bid is 50% lower than the average of all qualified bids
2. ‌Bid 50% below second-lowest‌: When a bid is 50% lower than the second lowest qualified bid
3. ‌Bid 45% below ceiling price‌: When a bid is 45% lower than the project's maximum budget limit
4. ‌Committee determination‌: Other cases where the evaluation committee deems the price abnormally low and potentially affecting quality or contract fulfillment

Multi-Party Accountability Mechanism

The policy creates a comprehensive regulatory framework with clear responsibilities:

• ‌Evaluation Committees‌: Must assess price reasonability considering e-commerce platform prices and local industry salary levels
• ‌Purchasers‌: Must closely monitor contract fulfillment by suppliers winning with abnormally low bids
• ‌Finance Departments‌: Supervise pilot implementation and mandate corrections for non-compliance

Industry Risks of Ultra-Low Bidding

Persistent low-price bidding has created multiple negative impacts:

• ‌Quality compromises‌: Extremely low prices may lead to substandard products affecting patient safety
• ‌Innovation stagnation‌: Price-focused competition discourages R&D investment in advanced technologies
• ‌Market disorder‌: Creates unfair competition that disadvantages quality-focused manufacturers

Recent cases like "￥1 winning bids for entire production lines" and "￥0.01 reagents" highlight these systemic issues.

Nationwide Policy Implementation Trends

Beyond Guangxi, multiple regions are adopting similar measures:

• ‌Wuhan, Hubei‌: Analyzed 6,031 project packages over three years to develop targeted solutions
• ‌Nanjing, Jiangsu‌: Revised centralized procurement documents with detailed review procedures
• ‌National Pilot Programs‌: Launched in free trade zones including Beijing, Shanghai, and Hainan

This trend signals the impending end of business models relying solely on ultra-low pricing.

Strategic Recommendations for Suppliers

Medical equipment suppliers should adapt by:

1. Developing scientific cost-calculation systems to avoid irrational low bids
2. Emphasizing product quality and technological innovation as core competencies
3. Understanding regional policy variations to adjust bidding strategies
4. Strengthening contract fulfillment capabilities to ensure post-bid service quality

Conclusion

The new procurement regulations mark the end of chaotic low-price competition, ushering in healthier, more standardized industry development. This transformation creates fair competition opportunities for quality-focused, innovative companies, ultimately benefiting healthcare providers and patients. Medical equipment suppliers should proactively adapt to these changes and capitalize on emerging market opportunities.