China's medical price reforms aim to halt inflated drug and consultation costs

Recent changes as a result of the introduction of medical price reforms in China are expected to eliminate public hospital mark-ups on drug prices and cut prices for medical examinations and supplies by the end of 2020, according to a guideline issued by the National Development and Reform Commission (NDRC) last week.

The reforms will allow hospitals to charge more for registration fees, operations, nursing care and traditional Chinese medicine, according to the guideline, reports the state news agency Xinhua.

Due to insufficient government funding, Chinese public hospitals rely heavily on mark-ups on drug prices and high fees for examinations and materials such as bandages, creating an incentive for doctors to overprescribe drugs and advise unnecessary check-ups, which has fueled doctor-patient tensions.