Proposal to curb rising prices of medicine, services released

• Source: Global Times
• [19:42 November 24 2009]
• Comments

However, this proposal has drawn skepticism from Chinese experts.

"This proposal was under discussion half a year ago. But it does not make any difference compared to the original plan, because the medicine price system remains unchanged. What's even worse is the new markup policy. We already have a lot of problems on implementing the 15 percent commission rule across the board, not to mention a fluctuating markup policy for different medicines," explained Zhu Hengpeng, a researcher from the Chinese Academy of Social Sciences.

The price markup on drugs has been a key issue in China's medical reform. The interests of many stakeholders will be involved, including public hospitals, doctors, drug manufacturers and patients.

"Although the intention to quell the rising prices of drugs price is not doubted, the proposal cannot resolve the problem of high expenses on medical treatment, which requires an all-round health reform package," said Li Lin, a professor from the China Center for Economic Research at Peking University. She added the simplest way is for the government to boost its investment in this sector.

When it comes to the prices of medical services in the proposal, Li doubted how related departments will set prices as there are a great number of services offered at hospitals.

"To decrease the prices of medicines probably will force hospitals to offer unnecessary medical services to the patients," Li said. In the end, the patients will still be victims of this vicious cycle.

"How they charge for medical services is a big problem. Should it be based on medical prescriptions or the number of medical treatments?" Zhu asked. He also agreed with Li, adding that doctors are likely to offer expensive prescriptions if the reform proposal goes ahead.