Economist: Essential Drug "Zero-slip" Policy Will Bring Big Problems
This article was originally published in PharmAsia News
Executive Summary
Health personnel in Zhejiang province expressed doubts about the zero-slip policy and the potentially negative effects it would bring. Community health service institution revenue comes from three sources: drug sales, medical services and financial subsidies. In the majority of institutions, drug sales account for more than 70 percent of total revenue. The zero-slip policy will greatly reduce income from drug sales, creating a RMB 90 million budget gap for Haining city, which is only offering RMB 5 million in compensation. A doubling of medical service prices would not even make up for half of the budget gap. Some fear that staff reductions may be the only means to maintain balance. (Click Here For More - Chinese Language