National health watchdog urges thorough investigation on kickback scandal
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Doctors take rebates from the hands of drug companies, while patients have to carry the burden of high prices. [Photo: agencies]

China's National Health and Family Planning Commission has asked for a thorough investigation of fraud and misconduct in public hospitals. The move followed a media report which exposed drug rebate scandals in regional hospitals.

A program by China Central Television (CCTV) on Saturday reported doctors in regional hospitals were found taking kickbacks from drug companies.

CCTV reporters took eight months visiting six large hospitals in Shanghai and Hunan, and found out the main reason behind the high prices of medicines.

According to the report, drug agents provide high kickbacks to doctors for product promotion. Generally, if doctors prescribe the drug that the agents promote, the agents can earn 10 percent of the drug price, while the kickback for doctors can reach as high as 40 percent of the price.

The report also pointed out that drug price inflation may be feeding prescription drug rebates.

State-run, nonprofit healthcare institutions in China procure most of the drugs they use through a bidding process centralized at the provincial level.

Research found bid prices for most medicines are five to ten times higher than the original price. The higher bid prices are the more kickbacks doctors can get.

In Taihe County, China's largest pharmaceutical distribution center based in Anhui Province, a 20-ml Edaravone Injection for acute ischemic stroke is sold at 11.5 yuan, while the bid price soared to 114 yuan.To crack down on illegal practices in hospitals, the national health watchdog urged local health authorities in Shanghai and Hunan to seriously investigate and deal with the cases in accordance with law. It also sent two inspection teams to the areas in coordination with local investigations. So far, a doctor in Hunan has been suspended from duty.

Author： 　　　Source：CRI　　　 Editor：Yang Fan