History of Drug Kickbacks
Drug Kickbacks first appeared in the late 1980's - early 1990's[1]; they began to rise around 1995, and since then they have become more and more intense, and have gradually become nationwide, industrial, and subterfuge. Drug kickbacks and medical material kickbacks (worse and more insidious than drug kickbacks) are the two main direct causes of "expensive doctor visits", while seriously jeopardizing the moral conscience of medical personnel and the safety of patients' lives.
Mechanism of Drug Rebates
The state reduces its investment in hospitals (hospitals are marketized and managed by corporations) -- hospitals need to survive and develop -- medicines are used to support the medical profession (maximum profit is made through medicines) --Pharmaceutical companies provide maximum profit to hospitals --Pharmaceutical costs increase --Pharmaceutical companies compete in an unorganized manner --Kickbacks Generate and increase - Shift the burden to patients and society [1].
The process of drug rebate
(1) Drug manufacturers inflate the price of drugs, which is often more than five times the actual ex-factory price, and this inflated price of drugs is ultimately approved by the national price department and issued as a red-topped document from the price department. The first such inflated pricing appeared in the imported drugs joint venture drugs, and later triggered the domestic new drug "follow the trend", many domestic drugs have also changed its dosage form name specifications, changed its face for the "new drug", and then greatly inflated its price.
(2) Recruiting drug agents or drug pushers, i.e., pharmaceutical companies and drug representatives.
(3) Drug representatives use money to get through to hospital drug administrators (including hospital-level leaders and departmental leaders), and kickbacks are given for drugs to enter hospital pharmacies.
(4) rebate drugs into the hands of patients, and ultimately also need a pen and prescription in the hands of doctors, with rebates to get through to the doctor is the final procedure of the drug representative, to the doctor's rebate is generally about 20% of the retail price of the drug (generally by the hospital pharmacy department statistics on the number of prescriptions for each doctor and to the drug representative, drug representatives accordingly decided to give the doctor the amount of rebate) [2].
Roots of drug rebates
The root cause of the problem of pharmaceutical rebates, lies in China's current extremely deformed health care management system: ① medical field of Chinese characteristics of the market, the administrative monopoly of the health care market and price control; ② many of the government's responsibilities completely aside; ③ drug to support the medical; ④ so that the "kickbacks "as" gray income "to become a necessary supplement to the income of doctors [3].