In recent years, the medical device market has become “popular†in a sales model—bundled sales, in which suppliers supply medical devices free of charge to hospitals, and the hospital purchases and uses consumables related to the devices.
“Actually, in this marketing model, suppliers can not only make up for the cost of free medical devices through the sales revenue of related products such as hospital reagents and consumables, but also earn huge profits.†A staff member unveiled the hidden "mystery" in the bundled sales.
Earn more after giving away
Mr. Zhang is the head of a private medical institution. In recent years, his hospital business has become bigger and bigger. In order to improve the quality and level of medical services, he plans to purchase a new batch of medical equipment this year. Recently, Mr. Zhang ran several large-scale medical equipment exhibitions, and wanted to know more about the performance and price of related medical equipment. In the process, he received a call from a representative of several medical device companies, and the other party expressed their willingness to give him a free medical device or provide him with medical equipment.
You can get equipment without spending money. Is there such a cheap thing? Mr. Zhang was very confused, but he still had a meeting with one of the representatives. "After talking, it is known that the original gift equipment has the prerequisites, that is, the same brand of consumables must be bundled, and the amount of consumables used must reach a certain amount each year." Mr. Zhang said.
"I bought it without selling. I have calculated that the price of consumables bundled for sale is high and the profit margin is very large, which will not only aggravate the financial burden of patients, but also is not conducive to the long-term development of the hospital. I decisively refused." Mr. said that according to his estimation, a gynecological examination equipment of about 300,000 yuan, if signed a 10-year contract according to the conditions stated by the business representative, the profit earned by the manufacturer is at least one million yuan, which does not include post-maintenance. cost.
“Where is there a free lunch in the world? Businesses don’t make a loss-making business, and giving away equipment actually earns more, because the benefits hidden in the attached conditions are far higher than the profits earned by selling one device. And, some are free. The gifted equipment not only bundles the consumables, but also bundles the after-sales service. The replacement parts are tens of thousands of yuan. The cost of consumables and maintenance is simply a 'bottomless hole'. Although the hospital also wants to repair the equipment itself, many importers do not provide drawings or even A maintenance password has been set on the device." Mr. Chen, a medical device agent in Zhejiang Province, said.
Mr. Chen also introduced some of the situations he learned: A few years ago, a hospital in Changchun used medical equipment with a price of about 250,000 yuan for each market that was freely provided by two manufacturers. According to the agreement, the hospital has been using the same type of test strips, reagents and other consumables as the equipment, and the annual cost of consumables is more than 200,000 yuan. Last year, the components of one of the bacterial culture equipment were broken, and the hospital spent 100,000 yuan to replace the components. Now the hospital is looking forward to expiring the contract and expediting the cooperation.
Bundle sales are ubiquitous
According to industry analysts, the medical device market is developing rapidly. The same type of medical devices with the same function are more common in the market. The market competition is becoming more and more fierce. If the equipment is sold separately, the profit margin is limited, and the free equipment and bundled use. The sales model of consumables has become a strategy for many medical device manufacturers to bind their interests for a long time.
“Bundled sales are a common marketing tool in the medical device market. Hospitals add equipment without spending money, and companies have also made profits from them. It seems that both parties are cost-effective. Before giving away equipment, companies will investigate the hospital’s medical market in detail. As long as the hospital can guarantee the consumption of consumables, we think that this machine is worth giving. However, if the consumables bundled by the hospital during the cooperation period can not meet the valuation of the company, the company will generally not cooperate with it." A senior management of a well-known medical device company revealed some insiders to the reporter.
Why do you know that manufacturers donate equipment to make more money, or are there a large number of hospitals willing to cooperate with manufacturers? An industry insider analyzed that private hospitals must seize the market, relying on excellent medical technology and services; on the other hand, relying on advanced medical equipment. Public hospitals have government investment, private hospitals do not, and the latter must be carefully calculated for every penny spent. In order to solve the financial pressure, many private hospitals have to accept the cooperation method of giving or taking lease.
Mr. Chen said that the sales model of free gift equipment and bundled consumables is not only “prevailing†in private hospitals, but also in large public markets. Many medical equipment are expensive, especially for high-end medical equipment. The price is tens of millions of yuan, which is also a big pressure for public hospitals where the funds are relatively tight. Therefore, the bundled sales model is not uncommon in public hospitals.
Domestic brands are affected by the impact
The reporter learned that bundling sales is an important marketing strategy for foreign-funded enterprises to seize the Chinese market, and most of the gifts they choose are large and medium-sized hospitals with large medical treatment. For many large hospital medical laboratories including consumables and reagents used in biochemical, molecular, and immunodiagnostic fields, multinational companies are using the free gift equipment and bundled consumables to seize the market.
"Bundled sales are suspected of unfair competition. It pushes up the price of consumables and aggravates the burden on patients, which is not conducive to the healthy development of the medical device industry . Especially the consumables bundled with foreign brands are not only expensive, but also suspected of monopoly operations, which is not conducive to The formation of market competition mechanism." A staff member of a provincial industrial and commercial department said.
According to Xinhua News Agency, in the imported hemodialysis machine market, the price of consumables bundled by foreign-funded enterprises is at least 100 yuan higher than the average consumables. According to one imported dialysis machine, four patients can be dialysis and one year of work. In the calculation of the day, the supplier can charge at least 120,000 yuan in consumables for one year, and the price of an imported hemodialysis machine is only about 120,000 yuan. The company can recover the equipment cost in one year.
"China's hemodialysis industry started late, equipment and consumables production are often separated, while multinational companies are integrated production of equipment and consumables. The bundled marketing model will cause a fatal blow to China's hemodialysis industry. At present, those who cannot participate in bundling sales. Domestic brands can only watch the market being taken away by foreign-funded enterprises. The staff of the industrial and commercial department told reporters that the main profit-seekers of bundled sales are manufacturers and hospitals, but the high cost is passed on to patients and medical insurance funds. It not only aggravated the problem of “expensive medical treatmentâ€, but also had a huge impact on the domestic medical device industry.
The staff also said that multinational companies began to strengthen bundle sales in 2010, initially concentrated in the top three hospitals, and now slowly extended to county hospitals. In 2010, domestic hemodialysis machines accounted for about 10% of the market, and now it is less than 3%.
Governing the market order is an urgent task
The insiders analyzed that the bundled sales drill is a loophole in China's medical device bidding system. It avoids the state-stipulated medical equipment bidding procedures and legal supervision, and there are corrupt activities such as interest transfer. This marketing model has seriously disrupted the medical market order in China, increased the expenditure on medical insurance funds and the burden on patients, aggravated the problem of “expensive medical treatmentâ€, and formed an impact on the national medical device industry, violating the “Anti-Unfair Competition Law†and “Reverseâ€. The Monopoly Law, the Government Procurement Law and the Bidding Law, it is imperative to deal with this issue in a timely manner.
"Because of economic strength, cost savings, etc., some medical institutions are willing to accept the bundled sales of manufacturers. In this regard, how to strengthen supervision is a relatively difficult problem." The staff of the industrial and commercial department said, "It is undeniable that The bundled sales model solves the problem of financial pressure for medical institutions to purchase equipment to a certain extent, but such sales must be operated according to laws and regulations, and cannot be passed on to patients and medical insurance funds for monopoly operations. We attach great importance to this issue and effectively strengthen supervision and purify the market behavior of bundled sales of medical devices."
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