Economic Observer Online
July 4, 2012
By Wang Jinghuai(王井怀), Zhou liang(周靓)
Translated by Tang Xiangyang
Original article:[Chinese]

 
The Beijing Friendship Hospital on Sunday started selling medication at cost price, introducing a medical service charge instead of the mark-up for treatment and registration fees and joining five other hospitals that are piloting the scheme. 

 
“We used to sell medicines at prices 15% higher than their cost,” said one doctor with the hospital, whose medicine counter has been flooded with orders since the scheme was introduced.

 
Chen Delin, a Beijinger with a history of hyperplasia of the prostate gland, said that the scheme had reduced his monthly medical expenditure from 216 yuan to 188 yuan.

 
Without the mark-up on drugs sales, the Beijing Friendship Hospital is relying on a fees that it charges for consultations with doctors - for example, it costs 42 yuan to see an ordinary doctor, an appointment with a director-level doctor is billed at 80 yuan and you have to pay 100 for advice from an expert-level doctor.

 
Since standard medical insurance only covers the 40 yuan fee, ordinary doctors are in far greater demand than the “expensive experts.”