The EU Chamber of Commerce in China has released its bi-annual “European Business in China Position Paper 2023/2024,” which compiles recommendations from over 1,700 member companies. The document aims to foster constructive dialogue between Europe and China, enhancing engagement between European firms and Chinese stakeholders for mutual benefit. The paper covers a broad range of topics, including intellectual property rights, research and development, with specific focus on the pharmaceutical industry and healthcare devices.
Pharmaceutical Industry Recommendations
Access, Payment, and Reimbursement System:
The paper calls for the optimization of the access, payment, and reimbursement system for innovative pharmaceuticals, advocating for value-based healthcare and a multilayer medical security system. It suggests that the National Reimbursement Drug List (NRDL) should incorporate value-based assessments while ensuring affordability. The authors highlight the need for a dedicated national, multi-party innovative access review and payment model for ultra-rare diseases, combining Basic Medical Insurance (BMI) funds with commercial and charity sources to improve access for patients. They also recommend removing the RMB 300,000 annual cost threshold for rare disease drugs to be considered for NRDL inclusion via negotiations.
Collaboration and Hospital Access:
The paper urges greater collaboration between the National Health Commission (NHC) and National Healthcare Security Administration (NHSA) to ensure access to innovative drugs within hospitals. It also addresses the volume-based procurement (VBP) program, suggesting a long-term evaluation of its impact on product quality, patient outcomes, and physician practices. The EU advises central authorities to exercise caution with provincial/regional VBP tenders for biologic products due to the high risks associated with substitution or treatment discontinuation.
DRG/DIP Reforms and Quality of Care:
The paper cautions against the government’s ongoing Diagnosis-related Group/Diagnosis-intervention Packet (DRG/DIP) reforms, emphasizing that cost reduction should not compromise the quality of care.
Healthcare Equipment Working Group Recommendations:
The EU’s healthcare equipment working group advises that quality and clinical requirements should be the primary criteria for VBP tenders, rather than procurement prices. They recommend granting a transitional period before implementing VBP tenders at the provincial level or above to allow winning bidders to prepare sufficient inventory and suggest longer intervals between VBP tenders to evaluate the clinical application and quality of services in hospitals.
