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China hospitals procurement ban

1st August 2006

China‚Äôs Ministry of Health is to ban hospitals from buying their own equipment in a bid to wipe out a culture of bribe-taking and corruption. 

Doctors and administrators have been accused of taking kickbacks for ordering equipment that is not needed or that is priced artificially high. Many hospitals are thought to use advanced medical equipment to charge patients high rates for unnecessary tests.

The equipment reviews and the introduction of a system of collective purchasing are intended to encourage hospitals only to buy devices that are needed and therefore reduce the number of unnecessary tests ordered for patients.

The imposition of the collective purchasing scheme is also intended to prevent foreign suppliers from selling relatively untried equipment in China. The new rules could impact international suppliers such as GE Healthcare and Philips Medical Systems, which see China as a strategically important growth market.

 

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Article Information

Title: China hospitals procurement ban
Author: Chris May
Article Id: 585
Date Added: 1st Aug 2006

Sources

The Financial Times

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