A pilot scheme aimed at cutting medical costs and enhancing hospital treatment has launched in Beijing. Five public hospitals will take part in the trial, which focuses on boosting efficiency and separating medical and administrative budgets.
Beijingers may soon see their medical bills going down.
Reforming China’s healthcare system presents many challenges. One major one is how to remove pharmaceutical profits from the operating revenues of public hospitals.
Prescriptions can be brought in most Chinese hospitals. But there’s often a 15 percent price mark-up.
Critics say this encourages the over-prescription of drugs.
Under the new pilot scheme, drugs will now be sold at wholesale prices.
Beijing Friendship is one of the hospitals taking part in the trial.
Liu Jian, director of Bejing Friendship Hospital, said, "After removing the 15 percent surcharge on medication, we will sell drugs based on wholesale prices. We will have to find other ways of recouping the 126 million yuan we make on drug profits each year. "
The government says it will take measures to make sure hospital operating expenses are covered.
But there will also be a drive to cutback on unnecessary expansion and operational waste.
Han Xiao Fang, director of Beijing Healthcare Reform Dept., said, "Through these reforms, we hope to eliminate over-expensive drug prices and unnecessary testing issues. This is our long-term goal for public hospitals. "
Besides the Friendship, Chaoyang, Tongren, Jishuitan, and the Beijing Children’s hospitals are all taking part in the trial.
If it proves a success, the reforms will be rolled out across the rest of the capital.