More needed for medical reform

cctv.com 02-24-2006 13:15

A government plan to reduce the price of medicines has backfired for patients. The central government reduced the retail prices of 22 kinds of medicine as part of a medical reform campaign last September.

So far, the price cuts have actually meant more expensive medicine. And patients have a lot to complain about.

Yang Hongbing, Patient, said, "Cut-price medicine is not available. The hospital says it's due to short of supply. Now they prescribe me more expensive medicine, with a price some seven to eight times higher. My retirement salary can never afford that. "

The sale of medicine is the main source of revenue for hospitals. So instead of stocking the cheap stuff, many hospitals have decided to let stocks run out, and order the more expensive brands.

Xu Ting, Director of Huaxi Hospital, said, "We stored 21 of the 22 cut price drugs. However there's only one whose sale has increased. "

Production of the cut price drugs is also decreasing. Companies are pouring more money into the higher priced drugs which bring in bigger profits.

Li Xin, Manager of Shuanghe Drug Company, said, "The production cost increases rapidly as the sale of cut price drugs reduces ... the reduction is at least 30 percent. "

China has launched over a dozen similar reduction campaigns involving 1,500 kinds of medicine over the past decade. But the cheap drugs slowly disappear from the market.

Wang Xueqing, Price Bureau, National Development & Reform Commission, said, "The problem involves the chaotic supply and demand system, as well as the management mechanism, leaving loopholes for dirty business. "

Experts say there must be structural reform before the government can achieve its objectives. Otherwise, price cuts only become empty promises.

Editor:Chen Zhuo  Source:CCTV.com