Beijing to nix consumable markups in 3,700 hospitals



Beijing is pushing forward on sweeping reforms to medical consumables handling in hospitals. From June 15, a total of 3,700 hospitals across the city will no longer charge any markup on sales of medical consumables, while there will be adjustments made to prices charged for traditional Chinese medicines (TCMs), pathology, psychiatry, rehabilitation, and surgery services to compensate and better reflect the value of human resources.

Beijing’s “medical linkage” reform was introduced by Lei Haichao, director and Party Committee secretary of Beijing Municipal Health Commission. Specific measures include lowering medical device item prices, increasing the prices for TCMs and other services as noted above, cancelling the 5%-10% mark-up applied on medical consumables by medical institutions and selling to patients at the listed procurement price. Volume-linked procurement of both medical consumables and drugs will take place.

The reforms affect public medical institutions managed by the municipal government, government-sponsored institutions, and state-owned enterprises, as well as army-run medical institutions in Beijing. Private medical institutions from whom the government purchases services, or those included in the scope of Basic Medical Insurance (BMI) system coverage, can participate voluntarily.

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