Fujian pilots zero profits on sales of drugs

( chinadaily.com.cn )

Updated: 2014-12-04

Fujian province is piloting a zero mark-up policy on drug sales in all of its 58 counties.

The mechanism aims to wipe out the price difference between what a hospital buys the drugs for and the price it sells them to patients.

All sorts of public hospitals, including general hospitals, traditional Chinese medicine hospitals, maternal and child care service centres and psychiatric hospitals are covered by the pilot project.

The hospitals have been ordered to implement the policy by Dec 15, according to a notice issued by the Fujian provincial Government. Their income loss in this regard will be partly subsidized by local governments.

The zero-profit drug sale is part of a comprehensive healthcare system reform.

The notice also requires all county-level hospitals to adopt unified standards of medical services, and make sure the charged items are covered by the medical insurance system.