Corruption remains rampant in public hospitals’ procurement of pharmaceuticals and medical devices, says Jiemian. Pharmaceutical sales agents say they are obliged to bribe doctors who have the power to sway hospitals’ procurement decisions, Jiemian reports. Large public hospitals are particularly prone to the practice, it says, because of their high demand for expensive pharmaceuticals and high-end medical devices.
To stay profitable, pharmaceutical and medical device manufacturers take into account the cost of bribes when setting product prices, a move that effectively shifts the extra financial burden to consumers, according to Jiemian. Government agencies have attempted to curb the phenomenon by taking over pharmaceutical procurement responsibilities, it says, adding that cities like Shenzhen are experimenting with delegating the service to trustworthy retail companies selected by the local government.