Integrated Reform of Public Hospitals with New Payment Mechanism for Doctors

According to the conference of medical and healthcare reform in June23rd, Ningbo, the second batch of piloting cities for public hospital reform has launched integrated reform of public hospitals. It seeks to end kickbacks among doctors by reducing medicinal costs and improving ways of medical payments and regulating medicines and medical practices.

What becomes the spotlight is nurturing skilled doctors instead of doctors relying on kickbacks by reforming Li Huili Hospital first in terms of remuneration systems among other piloting reforms including pricing and purchasing of medicines.

Purchasing concentrations of medicines previously have cut prices and consumption dramatically, reducing medical expenses of at least 270 million yuan for patients in a year.

This year, Ningbo will extend the reform in a wider region, encouraging public healthcare bodies to purchase medicines in a concentrated way. The approach should also be accompanied by self purchasing mechanism.

The massively purchased medicines must be sold at prices according to 2014 bidding price for massive medicine purchases. The prices must not be over the low prices set in public medical organs in recent two years.

Suppliers set the actual purchase price bargain through its offer of medicines, the use of multiple rounds of offer, vote-by-round elimination ways identified for auction drugs based on the same low price, price cut, reasonable price, price negotiations satisfaction.

If the purchase price negotiations links and competition are not sufficient, or the price is too high and sellers do not accept the suggested price, trade can be cancelled. The buyer can in turn encourage the selection of high-quality low-cost alternative medicines and prefer affordable generic drugs that reach the international level. And Unsold medicines included into the citys centralized procurement catalog after the prescribed deadline should subject no further purchase and use.

We hope to lower exorbitantly high drug prices, prevent and curb corruption through centralized purchasing drugs and carry out a comprehensive reform of the pricing mechanism.

The initiative also promises price plunges in using large medical equipment in additions to price reductions in medicines.

At the same time, we will identify an appropriate remuneration system based on cultivating highly skilled doctors by increasing doctors' service fees in a reasonable way, particularly those of medical services including treatment, surgery, nursing beds, traditional Chinese medicine and other services.

Efforts will be made to gradually reduce the number of medical service items and set prices that reflect kinds of sickness.

Before pay system reform in line with the characteristics of the healthcare industry initiated by the state authorities, the city will explore the development of the total amount of wages built on performance among approved public hospital.

In 2015, Eastern School District of Li Huili Hospital Medical Center will be the first hospital that carries out pilot reforms of medical staff salary system in Ningbo City. This aims to identify pay system for backbone physicians by carrying out incentive payment and improve treatment of the income of medical personnel.

LINK:	http://en.nbwh.gov.cn/art/2015/6/26/art_1325_70338.html...
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