Plan to scrap drug mark-up in China's county hospitals may impact quality

 13-May-15, Caixin Online 

A plan to reform county hospitals around China could lower the level of services and hurt the morale of medical workers if the government does not address the financial problems that will likely arise, academics and doctors say.

Image: Caixin Online

The State Council, the country's cabinet, published a plan on May 8 that will overhaul thousands of county public hospitals amid growing discontent over soaring health care expenses and a lack of access to basic medical services, particularly in rural areas.

One of the key elements of the reform plan is barring hospitals from marking up the drugs that doctors prescribe. The State Council said local governments should help hospitals make up for the lost income. China's public hospitals have been allowed to mark up prescription drugs by 15 percent to make up for a shortfall in funding received from the government. This has prompted many doctors to give patients unnecessarily expensive imported drugs so their hospitals make more money.

Cao Jian, an economist at the University of International Business and Economics in Beijing, said hospitals had no choice but to raise prices on other services or to lower the level of services.

 Read the full article 

 Insights