China's govt split over "essential drugs"

Two Chinese government departments are at loggerheads over the issue of the cost of essential drugs. The Ministry of Health favors the drawing up by the government of a list of medicines, estimated to contain about 756 items, for which it will impose a price level, with manufacturers selected by the State. In addition, the distribution of these designated products is centralized and their use in medical centers is strictly controlled, to reduce the opportunity for pilfering or resale into the black market.

In contrast, the Ministry of Human Resources and Social Security presented a paper to the China People's Political Consultative Conference, at the end of October, which rejected drug price controls, arguing that a wider reform of health care provision at the national level is required. In particular, reimbursement policies and the way that hospitals receive commission payments tend to encourage the use of more expensive brands, according to Pharma China. A 15% margin on pharmaceutical products has been blamed by one group, the China Economic Reform Research Society, for high prices.