Off the wire
• 2nd Ld-Writethru-China Focus: China cuts interest rates again  • Chinese police nab 212 gun trade suspects  • Backgrounder: A decade of giant panda developments in China  • 3rd Ld Writethru-Xinhua Insight: Wild giant panda population surges, survival risks remain  • Rio celebrates 450th anniversary with revamp of port area  • Peaceful national elections held in Lesotho  • 10 injured as blast hits security forces' convoy in NW Pakistan  • Feature: Ebola survivors commend Chinese medical team  • Roundup: Rescue operation continues in avalanche-hit Afghan province, casualties soaring  • Ministry says children of migrant workers should be taught alongside urban peers  
You are here: 　 Home

1st Ld-writethru: China regulates hospital drug purchases

Xinhua, February 28, 2015 Adjust font size:

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. Endi