VietNamNet Bridge – A host of changes are set to be made this
year to the process by which hospitals nationwide bid for drugs, in a concerted
effort to halt violations in the price management of medication.
In Viet Nam, the Ministry of
Health has regulated that competing pharmaceutical companies must sell their
products to state hospitals through tender. The lowest price offered wins the
bid and the company gets the right to provide the drug to hospitals for a year.
However, due to inadequate
bidding management, in many cases the same drug product has sold for different
winning prices in different provinces.
Some companies have even worked
with hospitals to greatly push up the price of drugs in order to force patients
to spend more money on their medicine.
Health Minister Nguyen Thi Kim
Tien admitted at a recent conference that research had uncovered many problems
in the price management system. However she said that local drug prices were
not higher than in other countries in the region.
Nguyen Thi Yen, deputy head of
the Pharmaceutical Department at the Viet Nam Social Insurance Agency,
confirmed that the price of drugs has been known to differ greatly between
provinces.
She said in an interview with Hai
Quan (Customs) newspaper that the same brand of Paracetamol sold for 16
different prices across Viet Nam, from VND85 to VND900 per pill. She also cited
the example of Perabact, an Indian-made medicine that is available for just
VND18,000 (US$0.9) in Mekong Delta Dong Thap Province, but costs VND30,000
($1.50) in nearby Can Tho.
She said that drug prices could
be increased to an unreasonable level because the bidding process goes through
several different brokering stages.
Tien suggested that many
pharmaceutical companies collaborate with doctors to prescribe imported medicine
in order to raise the price.
According to the newly enforced
regulations, drug bidding is to be conducted centrally by health departments in
provinces and cities. Hospitals will negotiate contracts basing on drug bidding
results provided by provincial health departments.
The winning price of each drug
product will not be allowed to exceed the ceiling price approved by the health
department in their bidding plan.
Representatives from the health
sector have revealed that the drug price makes up 60 per cent of the total
treatment expenses of the average patient. As a result, the proper control of
drug prices will play an important role in reducing treatment costs.
Nguyen The Dung, CEO of the Minh
Dan Pharmaceutical Company, said that the new regulation would lead to the
reduction in price of some drugs by up to 30 per cent.
Nguyen Ngoc Hien, Deputy Director
of Ha Noi-based Bach Mai General Hospital said that his hospital's drug prices
would remain cheaper than private hospitals and other sources, despite Bach Mai
bidding for around 1,200 drug items every year.
The new regulations were
officially announced via a health and finance inter-ministerial circular in
January 2012.
Source: VNS
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment