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David Pieroni, Managing Director of Automation Quality Solutions (AQS) |
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Essential drug twist- gov't feels EDL zero markup squeeze, seeks other funding
Tuesday, February 2, 2010
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Zhixin Zhu, deputy director of the National Development and Reform Commission (NDRC), announced January 21 that the government has postponed its grassroots essential drug system implementation deadline to February 2010, www.menet.com.cn reported. The essential drug system was originally mandated to be implemented in 30% of grassroots medical institutions by the end of 2009.
The main cause of the delay is the implementation of the zero markup policy for essential drugs. The funding necessary to sustain subsidies to grassroots medical institutes are beyond the capabilities of the central and local finance bureaus. Now, the Ministry of Finance (MOF) is considering allowing other departments, such as national medical insurance funds, to fill in capital shortfalls.
Establishing the national essential drug system is one of the five major goals of medical reform for 2009 to 2011. The financial crisis in 2009 reduced the year-over-year growth of government incomes from 19.5% in 2008 to 11.7% in 2009, rendering it unable to afford the expense of implementing the zero-markup policy. |
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