China regulates hospital drug purchases
Updated: 2015-03-01 07:50
BEIJING - China's cabinet has ordered hospitals to order drugs only from pre-approved suppliers, in a move intended to regulate a system rife with corruption.
In a circular released on Saturday, the State Council General Office also said that hospitals should pay distribution fees directly to logistics companies to reduce intermediate links, and introduced a "multi-party negotiation mechanism" to formalize price negotiations between hospitals and suppliers.
The move will aid hospital reform, regulate medicine supply and improve state policies in this regard, according to the document, which stressed that the new policies draw on international convention.
Bribery is common in the bidding process to supply drugs to Chinese hospitals. The 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 promised harsh punishments for violations of the new process.
The new rule will effectively curb corruption in drug purchasing, according to Fan Dijun with the Chinese Academy of Governance.
- Online drug crackdown arrests 20,000 suspects
- 1,000 officers swoop on suspected drug dens
- Fujian cracks down on drug crimes
- China regulator to strengthen 'grim' food, drug safety control
- 25 jailed for food, drug safety cases in N China
- China calls for tipoffs on food, drug
- Illegal drug spending tops $82bn
- Monkey king, angel and superwoman at Beijing's 'naked run' race
- Prince William evokes Diana memories on Japan tsunami trip
- Best times to view spring flowers in Beijing
- Dragon boat race to celebrate Chinese New Year in Sydney
- South Pole setting for wedding photos, penguins included
- Milan Fashion Week - Autumn/Winter 2015-16
- Russian opposition leader Nemtsov shot dead in Moscow
- Across America over the week (from Feb 20 to 26)
Spring Festival trends reflect a changing China
Patent applications lead the world
BC lures Chinese tourists
Festival Special: Apps that make holiday shopping easier
Alibaba places China smartphone business bet with $590m Meizu deal
China, US vow to deepen military relations
Today's Top News
Homeland Security funding drama darkens US fiscal outlook
17th Apple retail store in Chinese mainland opens in Shenyang
PBOC cuts rates to ease business financing
Former celebrity TV anchor on crusade against pollution
China ends UN council presidency
Ling Jihua removed from CPPCC leadership list
Tech firms cut from approval list
Yuan on move, but not to top
Geared to go
The place to be