China introduces hospital pricing reforms

China's National Development and Reform Commission (NDRC) released a guidance document saying it will reform pricing for drugs and services provided at the country's hospitals. The agency said hospitals will stop collecting markups on prescribed drugs by charging above-market rates, and prices for some hospital services will be set by markets rather than the government. According to the commission, the new pricing systems will in place by 2020.

NDRC said hospitals will decrease prices for some services, such as diagnostics, while prices for nurseries, rehabilitation and surgery will increase. It said the discounts are expected to balance with price increases to maintain similar overall rates for patients. ...