Core Viewpoint - The article discusses the significance of centralized procurement (集采) for tumor gene testing services in Jiangsu Province, emphasizing its potential to reduce costs, eliminate kickbacks, and enhance industry regulation [2][3][10]. Group 1: Centralized Procurement Overview - Jiangsu Province initiated centralized procurement for tumor gene testing services starting August 16, aiming to make these services more accessible and affordable for patients [2]. - The procurement cycle is set for two years, with specific pricing rules established for different testing methods, including a maximum effective price of 280 yuan for fluorescence quantitative PCR and 800 yuan for high-throughput sequencing [5][6]. Group 2: Industry Impact and Concerns - The centralized procurement is expected to disrupt the existing high-price model, potentially benefiting larger companies while challenging smaller firms to either compete on price or target niche markets [7]. - Concerns have been raised about the potential decline in testing quality if companies bid at or below cost to win contracts, which could compromise patient care [8][10]. Group 3: Financial Implications for Stakeholders - The article highlights that the previous practice of providing kickbacks to doctors has been prevalent, with some companies offering up to 60% in incentives, which has now been significantly reduced due to regulatory pressures [10][11]. - Sales personnel in the industry may face substantial income reductions as the centralized procurement model diminishes the avenues for earning commissions through kickbacks, potentially leading to job losses for those unable to secure service agreements with hospitals [11].

Core Viewpoint - Jiangsu Province is initiating a centralized procurement process for tumor gene testing services to reduce costs and regulate the industry, following a successful model for non-invasive prenatal genetic testing [1][2]. Group 1: Centralized Procurement Details - The procurement period is set for two years, focusing on various clinical samples using fluorescence quantitative PCR and high-throughput sequencing methods for tumor gene testing [2]. - The maximum effective bid for fluorescence quantitative analysis is set at 280 yuan per single site, while for high-throughput sequencing, it is 800 yuan per gene [2][3]. - The pricing structure aims to ensure that companies can still cover costs, although concerns exist regarding the potential impact on testing quality due to lower prices [3][5]. Group 2: Industry Impact and Adjustments - The centralized procurement is expected to disrupt the previous high-price model, allowing larger companies to negotiate better with hospitals, while smaller firms may struggle to compete [4][8]. - There is a possibility that companies might bid below cost to win contracts, which could negatively affect the quality of testing services [5][6]. - The procurement process is anticipated to reduce gray areas in the industry, as it eliminates the need for high commissions to doctors, thereby increasing price transparency [7][8]. Group 3: Financial Implications for Stakeholders - Sales personnel's income is likely to decrease significantly due to the reduced commission structure following centralized procurement, impacting their overall earnings [8]. - The previous practice of providing substantial kickbacks to doctors has diminished, with current rates dropping to around 20% for retail and below 15% for inpatient sales [6][8].