China issues essential drugs list as part of medical system reform

China's Ministry of Health has issued a list of some 300 essential drugs that will be central to its plan to reform the health care system and cut medical cost within the next ten years.

According to the plan, by the end of this year, about 30 percent of state-owned grassroots health institutions would be equipped with all the essential medicines on the list and would be asked to use them as their primary treatment method. Our reporter Zhangcheng has more.

Reporter:
In order to make the health ministry's list, all the "essential medicines" must be available to the public at all times in adequate amounts, in appropriate dosage forms and at an affordable price.
According to the plan, by 2020, all state-owned health institutions in both urban and rural areas should give priority to using these essential drugs.

Zheng Hong is a senior official with China's Ministry of Health.

"According to the blueprint of China's medical reform, hammering out a drugs list is an essential step, like a cornerstone for the future reform. With the drug list, people's basic rights to drugs can be safeguarded, and the list can also promote the integration of drug manufacturers and distributors."

While disposable income among China's urban and rural residents has grown almost 20 times over the past two decades, average medical costs have soared to more than 130 times as much as they used to be 20 years ago.

Li Ling, a professor with the China Center for Economic Research of Peking University, believes this measure will largely cut the average citizen's medical costs.

"In the past, hospitals had the right to increase the prices of medicines by over 15 percent and then sell them to patients. But now, the drugs on the list will be sold to patients at the purchasing price, that is to say, the 15 percent price hike will be removed and patients will enjoy a lower price."
News of the cut in drug prices is welcome to many citizens, [including Li Jinfeng, a resident in Beijing.

"Drug prices will be reduced in our community's heath service stations. Meanwhile, we can apply for reimbursement for those drugs. Moreover, with the drug list, health stations will be regulated and will provide comprehensive medical service to residents." ]

However, some residents express concern over the new move.

"This system stipulates that all the drugs on the list are purchased by local governments. So how to ensure the transparency of the purchasing is a question. Plus, if the drug prices go down, so will hospitals' revenue. I hear that the government will give subsidies to hospitals, but how much? Is that enough to ensure hospitals' operation, and will they increase prices of services to make up for their economic losses?"

According to the ministry, the essential medicine list will be adjusted every three years to reflect changing health demands.

Drugs that have been confirmed to cause serious side effects would be removed from the list.
Building an essential drug system is part of the three-year plan for medical reform that China unveiled last April. The plan aims to lay a solid foundation for equitable and universal access to essential health care for everyone in China by 2020.

Zhangcheng, CRI News.