China targets ‘excessive’ prescriptions and tests in drive to cut hospital costs
Authorities are striving to keep yearly increase in health care spending below 10 per cent
Public hospitals on the mainland are facing tougher scrutiny over prescriptions and tests as Beijing tries to find ways to cut costs and keep spending from growing more than 10 per cent a year.
Health costs have been rising at a double-digit pace for the past two decades, and the central government has admitted reforming the sector has entered a “deep water zone” – a euphemism for difficulties.
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A new directive aimed at controlling spending was handed down on Monday by the National Health and Family Planning Commission and the State Administration of Traditional Chinese Medicine.
It called on its provincial and municipal branches to convey budget goals to public hospitals and establish a system for overseeing health care expenses.
Hospitals will be judged and ranked according to how well they limit spending.
“We strive to keep growth of national health care expenses under 10 per cent by 2017,” the directive said.