Another healthcare security law is to be launched!


 

　　On June 15, the National Healthcare Security Administration issued an announcement to solicit public comments on the Healthcare Security Law (Draft for Solicitation of Comments) (hereinafter referred to as the "Draft for Comments"). It consists of 70 articles in eight chapters, which improves China's basic healthcare security system from various aspects, including the means, operating mechanism and relevant regulations.

　　The Draft for Comments emphasizes that in the centralized procurement of drugs and medical consumables, enterprises should avoid bidding at prices lower than costs, bidding by fraud, bidding collusion, and abuse of market dominance. Cost investigations about drugs and medical consumables will be conducted by healthcare security administrations as well.

Encourage non-public hospitals to participate in the centralized procurement of medical consumables

　　The Draft for Comments clearly states that the country has established a centralized procurement system for drugs and medical consumables among public medical institutions. The healthcare security administrative department formulates and supervises the implementation of bidding procurement policies for drugs and medical consumables, and guides the construction of a centralized procurement platform for drugs and medical consumables.

　　The provincial healthcare insurance administrative department organizes public medical institutions within its jurisdiction to carry out centralized procurement of drugs and medical consumables and supervise its implementation. The centralized procurement platform shall be established in accordance with the unified planning and standards of the Healthcare Security Administrative Department of the State Council, which is managed by the provincial centralized procurement agency.

　　The provincial centralized procurement agency shall implement the transaction rules and standards formulated by the healthcare security administrative department, carry out the bidding, procurement, trading, and settlement of drugs and medical consumables, and monitor relevant information.

　　Public medical institutions shall purchase necessary drugs and medical consumables from the provincial centralized procurement platform in accordance with regulations. At the same time, non-public medical institutions are encouraged to participate in the centralized procurement of drugs and medical consumables.

Strictly investigate low-cost quotations and malicious bidding

　　In addition, the Draft for Comments also clarifies: Pharmaceutical enterprises participating in the bidding shall adhere to the principles of fairness, lawfulness, honesty and credibility, quality and price conformity and set the prices reasonably. Bidding lower than the cost, bid collusion, bidding fraud and abuse of market dominance should be strictly avoided.

　　Pharmaceutical enterprises that have won the bid shall ensure the safety, effectiveness and quality controllability of drugs and medical consumables, sign procurement and sale agreements in a timely manner, and ensure the supply and distribution in place in accordance with the requirements of the procurement and sale agreement.

　　Medical institutions should make timely payments in accordance with the procurement and sale agreement, and direct settlement with pharmaceutical enterprises using the healthcare security fund is encouraged.

　　The prices of drugs and medical consumables with market-adjusted prices in accordance with the law, as well as medical services, shall be set in accordance with the principles of fairness, lawfulness, quality and price conformity, honesty and credibility.

　　Medical institutions shall publicize the prices of drugs, medical consumables and medical services in a clear manner,strengthen the management and use of drugs and medical consumables, truthfully issue expense receipts and related documents, and accept the price monitoring, guidance, inspection and cost investigation from the healthcare security and other departments.

　　truthfully issue expense receipts and related documents, and accept the price monitoring, guidance, inspection and cost investigation from the healthcare security and other departments. cost-price investigation of drugs and medical consumables,implementing a credit evaluation system for drug prices and bidding procurements, and strengthening the supervision and inspection of illegal acts that infringe on the healthcare security fund by means of price monopoly and price bidding.

　　The healthcare security administrative department shall establish the mechanism for macro-management, classified management, dynamic adjustment, monitoring and evaluation of medical service prices; determine the procedures for price setting and adjusting; and carry out price monitoring, guidance, inspection, cost investigation and evaluation for medical institutions.

Strictly prohibit corruption in pharmaceutical procurement and sales

　　Pharmaceutical enterprises, medical institutions and their staff are prohibited from giving or receiving kickbacks or other illegal benefits during the procurement and sale process.

　　Administrative departments such as healthcare security, healthcare security agencies, medical insurance premium collection departments, designated medical institutions and their staff shall not accept bribes or obtain other illegal benefits.

Further strengthen the punishment for violations of the procurement process

　　The Draft for Comments also proposes that if a centralized procurement agency has one of the following circumstances, the healthcare security administrative department shall order it to make corrections, and the directly responsible person in charge and other directly responsible personnel shall be punished according to law; any loss of the healthcare security fund shall be duly returned by the agency; those who violate other laws and administrative regulations will be punished by the relevant competent authorities according to law:

　　(i) Fail to implement transaction rules and standards on submission onto and withdrawal from the centralized procurement platform;

　　(ii) Abuse the power of centralized procurement, restrict market competition, or cause unfair competition;

　　(iii) Seek illegal benefits in centralized procurement;

　　(iv) Other illegal acts in centralized procurement;

　　If pharmaceutical enterprises are found with the following circumstances, the healthcare security administrative department shall order them to make corrections and confiscate the illegal income; successful bid will be voided and a fine of 5‰ to 10‰ of the project amount shall be imposed; a fine of 5% to 10% of the amount shall be imposed on the legal representative, the main person in charge, the directly responsible person in charge and other responsible personnel; if it is a serious offence, the qualification of relevant pharmaceutical enterprises or the relevant drugs and medical consumables will be restricted or suspended and announced in public; those who violate other laws and administrative regulations will be punished by the relevant departments according to law:

　　(i) Bid at a price lower than cost, or bid by practices such as fraud, collusion and abuse of market dominance;

　　(ii) Offer bribes to healthcare security agencies, centralized procurement agencies, designated medical institutions and their staff;

　　(ii) Offer bribes to healthcare security agencies, centralized procurement agencies, designated medical institutions and their staff;

　　(iv) Other illegal acts in the bidding process.