China Submits Medical Reform Plan
by Richard Daverman, PhD
ChinaBio Today
China has called for an extension of the basic medical service network to rural citizens, while calling for the national government to increase its contribution toward meeting the health needs of its citizenry. The broad mandates for public policy were part of a basic outline for reforming China’s medical care and public health system, which were released by Chen Zhu, China’s top official at the Ministry for Health.
The new plan, which represents a year of work, was submitted to the National People's Congress Standing Committee, China's highest level legislature.
Chen Zhu said the government should seek to provide public health and medicare service that was at once convenient, low-cost, safe and effective.
At present, rural residents do not enjoy the same levels of heath care that urban citizens have come to expect. Although health care accounts for just 6% of China’s GDP (figures are from 2004), it is considered very expensive by the citizens of China. The state government covers 17% of the total costs of healthcare, while individuals pay the majority of their own expenses, about 54% of the total. Drugs account for 44% of the total costs, which is higher than in the West and a source of controversy.
The selling of drugs by hospitals is a major contributor to the revenues of hospitals and other medical institutions. Drug prices are heavily regulated, but many China citizens feel the hospitals are being run with a too-great emphasis on profit. There have been many calls for a reduction in drug prices and a greater separation between the entities that are prescribing drugs and those making a profit from selling them.
The new health plan from the Ministry of Health, in its broad initiatives, does not expressly address those concerns. While the plan does call for greater government contributions to health care, individuals will continue to bear most of the costs for their own treatment. By 2020, the government hopes to have in place an inclusive system of healthcare that regulates public health, medical care and insurance, drug supply and hospital management.
RELATED READING:
- Multinational Pharma Wants More from China’s Drug Rules
- ChinaBio® Forum Gives “Most Promising” Award to Two China Biotechs
- China’s State FDA Approves Aoxing R & D License For Anti-Opioid Addiction Drug
ChinaBio Today is a regular contributor to BioHealth Investor
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ChinaBio Today
China has called for an extension of the basic medical service network to rural citizens, while calling for the national government to increase its contribution toward meeting the health needs of its citizenry. The broad mandates for public policy were part of a basic outline for reforming China’s medical care and public health system, which were released by Chen Zhu, China’s top official at the Ministry for Health.
The new plan, which represents a year of work, was submitted to the National People's Congress Standing Committee, China's highest level legislature.
Chen Zhu said the government should seek to provide public health and medicare service that was at once convenient, low-cost, safe and effective.
At present, rural residents do not enjoy the same levels of heath care that urban citizens have come to expect. Although health care accounts for just 6% of China’s GDP (figures are from 2004), it is considered very expensive by the citizens of China. The state government covers 17% of the total costs of healthcare, while individuals pay the majority of their own expenses, about 54% of the total. Drugs account for 44% of the total costs, which is higher than in the West and a source of controversy.
The selling of drugs by hospitals is a major contributor to the revenues of hospitals and other medical institutions. Drug prices are heavily regulated, but many China citizens feel the hospitals are being run with a too-great emphasis on profit. There have been many calls for a reduction in drug prices and a greater separation between the entities that are prescribing drugs and those making a profit from selling them.
The new health plan from the Ministry of Health, in its broad initiatives, does not expressly address those concerns. While the plan does call for greater government contributions to health care, individuals will continue to bear most of the costs for their own treatment. By 2020, the government hopes to have in place an inclusive system of healthcare that regulates public health, medical care and insurance, drug supply and hospital management.
RELATED READING:
- Multinational Pharma Wants More from China’s Drug Rules
- ChinaBio® Forum Gives “Most Promising” Award to Two China Biotechs
- China’s State FDA Approves Aoxing R & D License For Anti-Opioid Addiction Drug
ChinaBio Today is a regular contributor to BioHealth Investor
_______________
posted by Nico at
4:46 PM
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