15drugmarkuptobescrapped

From: Shenzhen Daily

Updated: 2010-02-25 10:02

A 15-PERCENT drug markup will be scrapped in the city"s public hospitals this year, the health authority said yesterday.

Scrapping the markup was expected to save more than 7 yuan (US$1.03) for each outpatient visit, Xu Sihu, vice head of the municipal health commission, said yesterday.

Shenzhen will be one of 16 cities chosen by the Central Government to trial a reform of public hospitals, according to a directive jointly issued by the Health Ministry and four other ministries Tuesday.

The scrapping of the markup was expected to cost public hospitals 300 to 400 million yuan in lost revenue, which would be covered by government subsidies and a new service charge system, said Xu.

The health authority is now working on standards for the new charge with other government agencies, including the development and reform commission and pricing bureau. The initial idea is for patients to pay a fixed amount of money after each treatment.

A 15-percent drug markup had already been scrapped in the city"s 625 community health centers earlier this year.

Under a medical reform plan made public in January, a management committee will be established in the city"s public hospitals, which will make decisions on the development and operation of the hospitals.

The committee would increase hospital leaders" power in strategic decision-making and management over hospital affairs, said Xu.

Presidents of public hospitals would sign contracts with the health authority, setting targets for the quality of medical treatment, research achievements and satisfaction of patients and staff.

There would be no difference in salary standards between permanent employees and temporary employees and salaries will be decided according to performance, Xu said.

Source:Shenzhen Daily