Inspection prices are reduced by up to 70%! Why have testing items become the hardest-hit area in the IVD industry's price governance

This is no joke but a reality that the laboratory departments of many hospitals in Hunan are experiencing. With the implementation of a price adjustment notice issued by the Medical Insurance Bureau of Hunan Province, the prices of four testing items, including "Tuberculosis drug resistance molecular Testing", have been "halved", with the maximum reduction exceeding 70%. And this is merely the prelude to the sixth batch of medical service price regulation and governance by the National Healthcare Security Administration.

You may have heard of "IVD", but you may not be sure exactly what it refers to. In simple terms, IVD is a technical means that helps doctors make diagnoses through laboratory tests. Whether it is a routine blood test or complex gene sequencing, they all fall within the category of IVD. This time, the price adjustment is precisely aimed at a significant reduction in the charging standards for these testing items.

Then why was there such an adjustment?

The "Triple Targeting" of Price Governance: Why Do Inspection Items keep Falling Victim?

Looking back at the six batches of price regulation and governance carried out by the National Healthcare Security Administration, three of them simultaneously targeted inspection items. From thromboelastography tests to glycated hemoglobin determination, from the determination of B-type natriuretic peptide precursors to the detection of tumor markers such as carcinoembryonic antigen and alpha-fetoprotein, the laboratory department has become a "hotspot" in price control.

There is a clear logic behind this focus: the inspection project has obvious "three highs" characteristics - high price differences among regions, high differences in procurement costs, and a high proportion of medical expenses. The National Healthcare Security Administration provides a reference system of "expected target prices" for each province through cross-regional price comparisons, guiding localities to make reasonable price cuts.

Take Jiangxi as an example. In the first round, the average price of the three testing items was reduced by 41.31%, and in the second round, the price of the ten tumor marker testing items was further reduced by 30%. This "stepwise price reduction" is creating a demonstration effect across the country.

What is the regulation and governance of medical service prices?

First of all, we need to understand a concept - the governance of standardized medical service prices. This is a policy led by the National Healthcare Security Administration, aiming to adjust the pricing of medical service items to ensure that the prices of medical services are reasonable and transparent, and ultimately reduce the economic burden on patients.

Over the past few years, the National Healthcare Security Administration has carried out six such governance actions, three of which focused on the IVD field.

Why IVD? This is because such testing items are not only numerous but also account for a high proportion of the costs involved. For instance, common detection methods such as thromboelastography (TEG) test, glycated hemoglobin determination (added by chromatography), and B-type natriuretic peptide (BNP) determination are all frequently used in clinical practice.

Take Hunan Province as an example. Among the four items involved in this price adjustment, the price of "Tuberculosis Drug resistance Molecular Testing" has been reduced from the original 1,200 yuan to 360 yuan, a decrease of as much as 70%. This means that when patients undergo this test, they only need to pay one third of the original cost.

The "Two Extremes" of IVD Enterprises: Survival Wisdom in the Cold Winter.

The significant reduction in inspection prices has sent a chill through in vitro diagnostic enterprises. According to data from Tonghuashun Wencai, among the 40 IVD listed companies on the A-share market in the first half of this year, only 7 maintained positive growth in net profit, while 14 fell into A loss-making situation.

Even leading enterprises are struggling to make progress, and the survival space for small and medium-sized enterprises has been sharply compressed. Under the double squeeze of "declining inspection volume" and "lowering inspection prices", IVD enterprises have all launched self-rescue modes: leading enterprises are accelerating their overseas layout and promoting localized operations; Comprehensively strengthen cost control internally and optimize the management of accounts receivable.

The "time window" for domestic substitution

The "time window" for domestic substitution

Data shows that in the domestic immunodiagnostic market in 2023, the market share of domestic enterprises was less than 40%, and there is still a vast space for domestic substitution.

Good news also came from overseas markets: Mindray International's in vitro diagnostic business achieved double-digit growth, with the chemiluminescence business increasing by more than 20%. The overseas main business income of new industries reached 952 million yuan, up 20% year-on-year, and the growth rate of reagent business reached 37%.

The sixth batch of medical service price regulation and governance released by the Hunan Medical Insurance Bureau this time is not only a major adjustment to the IVD industry, but also a step for the entire medical industry towards greater transparency, fairness and rationality.

However, the price reduction is only the first step. The IVD industry in the future will still face more challenges and opportunities. For instance, how to maintain product quality while reducing costs, how to find its own position in the global market, and how to continuously improve service quality and efficiency through technological innovation are all important issues facing every IVD enterprise.

For the majority of patients, the reduction in IVD testing fees is undoubtedly a great blessing. With more and more high-tech detection methods entering clinical application, early detection and precise treatment of diseases will become possible. For doctors, this also means they will have more efficient tools to help patients overcome diseases.

Finally, let's look forward together to the continuous development and improvement of the IVD industry, so that every patient can enjoy more high-quality and convenient medical services and truly realize the beautiful vision of a Healthy China.。

Note: The above content is for reference only and does not constitute investment advice. The relevant interpretations of official policies in this article only represent the views of this platform. The content is subject to official documents.