China Unveils Comprehensive Plan to Tackle Unhealthy Practices in Pharma and Healthcare

The National Health Commission (NHC), National Healthcare Security Administration (NHSA), National Medical Products Administration (NMPA), and a total of 14 ministries have issued the “Key Points for Correcting Unhealthy Practices in the Field of Pharmaceutical Procurement and Sales and Medical Services in 2024.” The document aims to address key personnel and deepen the integrated governance of formalism, bureaucracy, hedonism, and corruption within the pharmaceutical and healthcare sectors, emphasizing accountability.

The document calls for enhanced full-domain and full-process management to tackle prominent issues in the production, circulation, sales, use, and reimbursement processes of the pharmaceutical industry. It guides and supervises all entities in the industry to operate compliantly.

Key Points:

  1. Standardizing Pharmaceutical Production and Circulation: The document mandates the implementation of corporate social responsibility, requiring enterprises to operate with integrity and in accordance with the law. It calls for the improvement of mechanisms for determining pharmaceutical prices, regular volume-based procurement (VBP), and equipment procurement policies for medical institutions. It also strengthens supervision and disposal efforts for key links such as project procurement, catalog preparation, price determination, project application, new drug application, and payment settlement. The management of pharmaceutical representatives and the “two-ticket system” policy will be improved, and practices like fake meetings, donations, and scientific research cooperation under the guise of sales will be strictly prohibited.
  2. Rectifying Unhealthy Practices and Corruption: The document focuses on optimizing the internal management of medical institutions to ensure reasonable examinations, medication, treatment, and standardized fees for patients. It highlights the need to focus on key minorities, such as “prestigious hospitals” and “renowned doctors,” and to punish those who use their positions to seek personal or familial gain through commercial enterprises or accept disguised benefits from pharmaceutical companies. The policy system and regulatory model will be improved.
  3. Rectifying Industry Chaos: The document calls for a crackdown on unqualified institutions, illegal medical practices, illegal drug recycling, “pharma shills,” “drug traffickers,” and other illegal and irregular behaviors. It emphasizes the need to focus on violations in areas such as assisted reproduction, medical testing, physical examination, medical aesthetics, and internet medicine. The document seeks to standardize live streaming sales and crack down on illegal and disguised advertising of medical products, drugs, medical devices, and the spread of medical rumors.
  4. Maintaining Medical Insurance Fund Security: The document emphasizes the need to strengthen the supervision of medical insurance funds and combat fraud and insurance fraud. It calls for joint flight inspections and special rectification of illegal and irregular issues in medical insurance funds. Price governance will be improved, and the reform of medical insurance payment methods will continue. A credit evaluation system for price bidding and procurement will be implemented, normalizing the dynamic adjustment of medical service prices.
  5. Consolidating Centralized Rectification Work Effectiveness: The document calls for a graded and classified approach to handling problems, focusing on joint punishment for bribery and acceptance. It emphasizes the need to strengthen industry integrity education, promote both rectification and construction, and strengthen the construction of clean governance in the field of medicine and health. The document also calls for improving the level of information interconnection among various departments to ensure policy coordination.- Flcube.com

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