New rule aimed at curbing graft in hospital drugs
Print Edition
Hospitals have been told to order drugs only from pre-approved suppliers in a move intended to regulate a system rife with corruption.
A State Council circular also says that hospitals should pay distribution fees directly to logistics companies to reduce intermediate links, and it has introduced a 鈥渕ulti-party negotiation mechanism鈥 to formalize price negotiations between hospitals and suppliers.
Bribery is common in the bidding process to supply drugs to Chinese hospitals. Winning firms are often unable to fulfill their contracts. There is also a trend of doctors prescribing unnecessary, expensive drugs to reap profits for hospitals or obtain kickbacks from drug companies.
The State Council is promising harsh punishments for violations of the new process.
China has been cracking down on high prices and corruption in the sector over the past year and in September fined GlaxoSmithKline a record 3 billion yuan (US$489 million) for paying bribes to doctors to use its drugs.
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