TITLE:
Research on the Financial Impact of Centralized Procurement of Medical Consumables on Public Hospitals
AUTHORS:
Ziyan Wen
KEYWORDS:
Medical Consumables, Centralized Procurement Model, Financial Management, Cost Control
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.13 No.12,
December
26,
2025
ABSTRACT: With the continuous deepening of the reform of China’s medical and health system, the centralized procurement with volume-based policy has gradually expanded from pharmaceuticals to medical consumables, becoming an important means to control medical expenses and alleviate the burden on patients. While the centralized procurement model significantly reduces the prices of consumables, it also profoundly impacts the financial management systems of public hospitals. Based on policy evolution and hospital management practices, this paper systematically analyzes, from a financial perspective, the effects of the centralized procurement model on tertiary public hospitals in terms of cost structure, capital operations, budget management, and internal control, identifies existing financial risks and operational challenges, and proposes corresponding response strategies and optimization paths. The study finds that while centralized procurement reduces the proportion of medical consumables and optimizes long-term cash flow, it also imposes higher requirements on hospitals’ short-term capital turnover, revenue structure, supply chain coordination, and financial internal controls. In the future, public hospitals need to further promote the integration of business and finance, strengthen information technology support, and improve performance incentives to achieve high-quality development amid policy changes.