Corruption Crackdown Accelerates in China’s Healthcare System

As mentioned last year in our news brief, China initiated a significant corruption crackdown in 2023. This crackdown was escalated again late last year when China’s National People’s Congress promulgated the 12th amendment to its criminal code. Starting last month (March), penalties have increased including imprisonment, larger monetary penalties can now be issued to local government and hospital officials, as well as healthcare professionals (HCPs) and private companies offering bribes.

This crackdown is led by the Chinese Communist Party (CPP), the National Health Commission (NHC), and the Central Commission for Discipline Inspection (CCDI). Foreign drug and device companies need to monitor their marketing strategies and be more disciplined at academic meetings. So-called “freebies” including donations or sponsorships must be evaluated to determine if they will alter a HCP’s decision making. Foreign medical companies should offer thorough anti-bribery training, so that their Chinese employees understand exactly what sales representatives can and cannot do, what is appropriate during hospital meetings, etc. Please also keep in mind that Chinese government officials now give “ethical ratings” to drug, medical device, and distributor companies which may affect a company’s ability to partake in tenders and volume-based procurement programs.

Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.

Source used in the article: