Since implementation of the policy of centralized drug bid procurement

hospitals have been banned from making the"second bargain"with bid-winning medical enterprises.However

the"second bargain"is widely existed in practice.This paper analyzes forming reasons of the"second bargain"from procurement system

medical institution and medical enterprise and probes into the undesirable effects resulted from banning the"second bargain".The following measures are taken to regulate the"second bargain"

namely cancelling the purchase-sale markup system

restricting the highest retail price of drugs

setting reference price for drugs by government departments and adjusting profit distribution of the"second bargain"

normalizing payment mechanism of the medical insurance system.