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China anti-corruption effort focuses on major medical institutions

24-Feb-15, Foley & Lardner LLP

As US-based health care providers look to China for new telemedicine opportunities, it is important to know your China partners before signing the contract. It is equally important take steps to ensure your own business development activities in China comply with both U.S. laws (such as the Foreign Corrupt Practices Act or FCPA) and China regulations (such as the “Nine Prohibitions”).

China anti corruption effort focuses on major medical institutions (c) Healthcare Law Insights

Image: Healthcare Law Insights

In February, the National Health and Family Planning Commission of the People’s Republic of China (NHFPC) released a “Work Plan on Inspection of Large Hospitals (2015-2017)” [大型医院巡查工作方案(2015-2017年度)].

The NHFPC’s Work Plan contains specific detail, including the names of medical institutions that will be inspected for regulatory compliance. It states that, in specific years during 2015-2017, the more than 40 listed large medical institutions in China will be inspected by regulators. Although larger medical institutions are the focus, the Work Plan is aimed at sending a broader message to institutions and businesses in the health care sector throughout China.

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