Drug prices

   Date:2010/06/21     Source:

The success of healthcare reform will largely depend on whether a recent hike in the prices of those drugs deemed fundamental medication is checked on time.

The new list is being touted as a major reform initiative, as the drug prices on the list are supposed to be decided by the State, in which case they will likely guarantee lower medical bills for patients.

However, it has been reported that the prices of dozens of listed drugs have been increased manifold - some by as much as 90 percent - in recent months.

 
It is quite obvious that this price hike is meant to force the National Development and Reform Commission (NDRC) into accepting the higher-than-reasonable rates so that manufacturers and suppliers can maximize their margins.

The NDRC and relevant local government departments need some time to check the cost of listed drugs before their retail prices can be determined. Drug manufacturers have utilized this time lag to hike returns.

It will certainly be a disaster if the relevant government departments accept the current higher rates while fixing the retail prices of these drugs. If so, some drugs may become more expensive than prior to the reform push.

The NDRC has assured that the prices of listed drugs are being checked and investigations are being conducted to ascertain the actual cost of these listed drugs.

It is no secret that distributors and medical representatives bribe hospitals and doctors in order to get them to prescribe their medicines over those of other manufacturers.

In light of this, making more transparent the bidding process for purchase of medicines and reducing the number of distributors have become extremely important.

This will greatly reduce the number of medicine suppliers and salespeople in between, thus lowering its cost.

It will also plug the loophole through which drug suppliers funnel supplies directly to hospitals by offering bribes to those in charge of drug procurement.

However hard the job will be, governments at all levels must work systematically and with rigor to arrive at the right cost of a particular drug.

The entire process needs to be overhauled to beef up the healthcare network. The concerned authorities must do that immediately, not only to ensure speedy implementation of the healthcare reform, but also in the interests of patients.

 

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