Drug Price Reform in Crisis(2)

Liu Guoen is a professor at Peiking University's Guanghua School of Management and director of the health care and economy research center there. He consults for the State Council's health care reform grup.

According to his research, 80 to 90 percent of the drugs sold by participating clinics are covered by the program, and thoseare around 40 percent cheaper than they would cost at a hospital.

But Liu says that though prices have decreased, the resulting market distortions have made the policy unsustainable.
More to Come

Thus it comes as no surprise that local media has reported that some clinics want to exit the system.

Meanwhile, the Department of Health has affirmed Beijing's methodology on several occasions, and the EO has learned that they even plan to expand the system. Recently, Shanghai, Hangzhou, and Chengdu will follow in the footsteps of Beijing.

At a press briefing in the beginning of September, Mao Qunan, a spokesperson for the Health Department, reiterated that the drug reform pilot was exellent and the future direction of community-based health care.

Mao suggested that Beijing continue to perfect the system, and second, that participating industries make the development of the system their top priority.

Aside from other adjustments to the reform that are in the pipeline, the Health Department announced on October 17 that the program will expand from its current scope of 2,600 clinics to one of 3,300 in the near future.