Government News
CPPCC members propose deepening China's health system reform to boost innovative drug profits 2026-03-09
Two members of the National Committee of the Chinese People's Political Consultative Conference have suggested that the health system reform should be deepened to balance the interests of doctors, hospitals, and innovative drugmakers, so that more such drugs independently developed in China can benefit domestic patients.
In the process of health reform, besides implementing the centralized procurement system reform to reduce patients' expenses, innovative drugmakers should also be "given room to survive and make a profit," Zhang Wenhong, director of the National Medical Center for Infectious Diseases and head of Huashan Hospital's infectious diseases department, said at the ongoing Two Sessions, China's two most important annual political conferences.
Zhang is a well-known expert in the prevention and control of infectious diseases, receiving widespread attention for frequently releasing public health guidance and popular science advice during the Covid-19 pandemic.
To realize the goal, China first needs to achieve the coordinated development and governance of the medical care, medical insurance, and pharmaceutical management mechanisms, which is also the core of deepening its health system reform, Zhang said. Through the coordinated reform of the three, a synergy can be formed to reduce the burden on patients, ensure the sustainability of medical insurance funds, reflect the value of medical staff, and promote the high-quality development of the pharma industry, he noted.
Many original innovative drugs developed in China have entered global multicenter trials in recent years, with developers transferring the global or regional market rights to overseas multinational pharma companies at high prices.
The amount of outbound licensing deals for innovative drugs in China exceeded USD130 billion as of Dec. 31, with more than 100 such agreements, Zhang pointed out. The reason why innovative drugmakers are actively seeking overseas cooperation is that this can help them earn more because of the relatively weak profitability in the Chinese market, he said.
Zhao Hong, chief physician at the Chinese Academy of Medical Sciences' Cancer Hospital, suggested improving the cost compensation mechanism for the use of innovative drugs, taking into account the interests of doctors, hospitals, and drugmakers, stimulating the enthusiasm of doctors in public hospitals to prescribe. In addition, hospitals should be allowed to "have income and incentives" in this process to break through the "last mile" of the implementation of innovative drug prescriptions and truly benefit patients, Zhao said.
A multi-payment system should be established for innovative drugs that combines medical and commercial insurance, Zhao pointed out, adding that hospitals should be encouraged to set up commercial insurance service centers and be allowed to have a certain range of autonomous pricing power over covered drugs, including innovative ones.
Source: Yicai Global
