Over the last 5 to 10 years, China has issued a number of anti-corruption regulations that have dealt with healthcare institutions and medical personnel. Corruption has been lowered but still exists. However, on October 11, the State Administration for Market Regulation issued a new draft, seeking feedback by late October, titled the – Draft Compliance Guidelines for Healthcare Companies to Prevent Commercial Bribery Risks. This new draft addresses anti-corruption and focuses on other players in the healthcare business. The draft guidelines have four chapters including further detail on what is and is not allowed.
Chapter 1 outlines the responsibilities of healthcare players and advises healthcare companies to set up an internal compliance program with independent third parties, confirming such policies are sound. Chapter 2 outlines some of the basic things a compliance program should include. Chapter 3 designates nine high-risk activities and how to avoid such risks. Topics covered include hospitality, free medical equipment, clinical research, and discounts/allowances, among others. Finally, Chapter 4 designates how to resolve anti-corruption risks and the need to be proactive in reporting poor behavior and illegal activities to the Administration for Market Regulations. Most Western companies already have programs to be proactive on anti-corruption issues, but to date, China does not have a proactive admission program.
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.