China regulates hospital drug purchase

A document on hospital drug purchase was released Saturday, which instructed that hospitals should only source drugs from provincial pharmaceutical procurement platforms.

The "significant" document, released by the State Council General Office, will aid hospital reform, regulate medicine supply and improve state policies in this regard, according to an accompanying statement.

Drawing on international practices, hospitals should only purchase drugs from pharmaceutical companies and distribution fees should be paid directly to logistics companies to reduce unnecessary intermediate links, it said.

Efforts should be made to ensure drug supply in outlying regions, the statement said, adding that the process should be transparent and any legal violations should be "harshly dealt with".

The document aims to reduce hospitals' exorbitant medicine bills and safeguard the public's health interests.

There had been a trend of doctors prescribing unnecessary, expensive drugs to reap profits for hospitals. Sometimes, they were encouraged to prescribe certain drugs in return for kickbacks given by drug companies.

It will also help curb commercial bribery, ensuring the sector's healthy development, the statement said.