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June 7, 2016

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Government cuts price of hospital medications

FROM next year, local hospitals will no longer be allowed to charge more than the purchase price for prescription drugs, an official said yesterday.

Under the current rules, hospitals are allowed to add up to 15 percent of a drug’s purchase price to the bill.

To compensate for the lost revenue, hospitals will be permitted to charge more for staff services.

The move is part of an ongoing reform process that began in 2011, when neighborhood health centers dropped the extra charge on drugs, Wu Jinglei, director of Shanghai Health and Family Planning Commission said in a radio interview yesterday.

The measure was adopted by four new city-level hospitals in 2013 on a trial basis and some district- and city-level hospitals also started to cut their drug prices from last year.

“We will push the measure this year and plan to remove the added price in all hospitals next year,” said Wu, adding that removing the added cost will eliminate the incentive for hospitals to prescribe unnecessary or expensive drugs.

Meanwhile, a government-run medical information website providing information on hospitals’ status, services and prices will be up and running by the end of this year, Wu said.




 

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