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    SDRC to launch new measures in curbing growing medical expenditures 11/4/2005
    Following a recent move of sharply reducing prices on many pharmaceutical products, the State Development and Reform Commission (SDRC) is planning to introduce a number of other measures to control the rapidly rising medical expenses and widespread corruption in pharmaceutical distribution.  The measures are as follows:

    1.      SDRC announced the establishment of a new center for drug price evaluation under it in order to understand the pricing structure of the pharmaceuticals better and strengthen its grip on the price setting of pharmaceutical products.

    2.      SDRC will work together with the Ministry of Health and the Supreme Court of China to introduce legal interpretations that will treat doctors’ kickbacks for drug sales as briberies.  Together they will also attempt to end the long-practiced hospital-departmental contracting system which fosters corruption.

    3.      SDRC will suggest the State Council to establish an interim Office of Drug Pricing to coordinate drug price-setting and control issues.

    4.      The Commission is developing a “Provisions for State Price-setting of Drug Products” which will be issued in the first half of 2006. 

    5.      SDRC will issue a rule requiring ex-manufacturer prices and retail prices of drug product printed on the retail packaging of such products.

     
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