Financial Times

China drug price reforms risk placing hospitals on life support

China drug price reforms risk placing hospitals on life support

  • May 26, 2015
  • min read

Financial Times

China drug price reforms risk placing hospitals on life support

Medicine prices in China are falling and profits of pharmaceuticals companies are under pressure as Beijing implements a revolution in drug costs and healthcare finance, but analysts warn that reforms will leave big holes in hospital budgets. One of the goals of the reform is to reduce incentives to prescribe more, and more expensive, drugs. "China's current healthcare system has created an addiction to drugs by Chinese hospitals and physicians," Bain & Company said in a recent report.