Tuesday, August 13, 2013

BBC Report: Drug Price Fixing, "corruption is an open secret"

On the back of the official government investigation into a massive drug price fixing scandal and the graft that riddles the medical establishment in the country, the BBC's Martin Patience has filed this special report.

Patience interviews a drugs salesman who paid doctors to get his firms drugs into the hospital pharmacies.
One of the salesmen said his company paid about $1,000 (£647) to get its product back on the shelves at one hospital.

"I don't deny [giving money to doctors] happens in foreign companies," the sales representative said.

More surprising is the practice of selling appointments to patients outside hospitals.
We filmed touts illegally selling appointments outside a Beijing hospital. They are so well established they even have business cards.

One tout told us if we paid him $50 (£32) he would get us appointment that afternoon. Otherwise you would have to wait for weeks.

Tackling corruption (as we've heard before) is a priority as the CCP tries to build a consumption based economy.
We've had the gold rush here and now the current economic model is unsustainable," says James McGregor, a business analyst.

"In order to build a consumption-driven economy, consumers need to be confident in the future, the government and their healthcare.

"And that may be why the government is going after all these pharmaceutical companies, because they've got to build confidence among the people.

"You can't order people to take money out of their pocket and spend it - you've got to lure them to do it because they're happy with the way things are."

 



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