Objective:This paper aims to analyze the impacts of medicine centralized bidding and purchasing policy based on the relationship between the bid winners and the bidden prices. Methods: A data collection method was used to collect data from medicine centralized bidding and purchasing policy in 31 provinces and OLS method has been employed to analyze impacts of the number of bid winners on the medicine prices. Results:The results showed a positive correlation between the number of bid winners and the bidden prices, which was a counter-intuitive appeal. In the group of non-essential medicines, the number of bid winners had a stronger impact on the bidden prices than in the group of essential medicines. Conclusions:The current medicine centralized bidding and purchasing policy does not achieve the expected objective and needs to be further improved.