The real cost of healthcare (3)

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It is a widely known secret in China's medical sector. Both multinational and domestic companies indulge in the practice.

"We are not the fundamental cause (of the high prices). Is it fair to label these people as immoral and punish them?" he asked.

The National Health and Family Planning Commission and the National Development and Reform Commission pledged to set up a new medical care system to replace the current one in which hospitals mainly depend on medicine sales to pay for operational costs and development.

Separating medical care services and drug sales is essential. It will result in the separation of service providers, and medicine purchasers and drugmakers, thereby avoiding any risk of collusion and disconnecting interests between parties.

Liu from Renmin University of China said the reform commission has the last say on pricing, but being the price supervisor has its own problems.

"Anti-corruption efforts should be strengthened at the government level. Administration and executive responsibilities should be clearly identified among various government bodies," he added.

The Chinese government reiterated its determination to fight graft and severely punished some guilty officials this year.

"The market is turning more and more transparent and becoming standardized. I believe it's a good thing for multinational companies in China," said Liu.

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