The State Council has determined the focus of this year's medical reform

Yesterday, Premier Li Keqiang presided over the executive meeting of the State Council and decided to deepen the focus of the reform of the medical and health system this year. He also proposed to reduce the “limit of foreign ownership of joint ventures and cooperative medical institutions”. The Securities Times reporter interviewed a number of people in the industry. They generally believe that the focus of this year's pharmaceutical reform will be on the most difficult bone of “public hospital reform”. The future listed companies of medicine and medical services will continue to benefit systematically.

Li Keqiang pointed out at the meeting that medical reform is an important part of comprehensively deepening reforms. The next step is to continue to increase investment, pay attention to the role of the market, implement the three linkages of medical care, medical insurance, and pharmaceuticals, strengthen public health services, promote the development of medical reforms in depth, enable the masses of the people to receive substantial benefits, encourage medical personnel, and ensure the sustainability of funds. It is understood that the next step in medical reform will focus on advancing the construction of a universal medical insurance system, accelerating the reform of public hospitals, orderly liberalization of access to medical services by social forces, perfecting the basic medicine system, and regulating the order of drug circulation.

Chen Guodong, a research fellow in the pharmaceutical industry at Risen Securities, told the Securities Times that the focus of the medical reform mentioned this time was basically mentioned. Regarding the contents of the reform mentioned in the content, such as "the construction of the universal health insurance system" and "the improvement of the basic medicine system," he said, "The contents of medical reforms such as universal health insurance and basic medicine systems are the most easily implemented contents of medical reform. From the beginning of the medical reform in 2004, Currently, they have all been implemented. For example, universal health insurance, including the new rural cooperative medical system, has covered more than 90% of China's medical insurance coverage."

For the "public hospital reform" this industry recognized the most difficult bones, Chen Guodong believes that this will be the direction of future reforms. According to Chen Guodong, in the current market, the medical services sector is relatively hot, precisely because of the market's expectations for the direction of reform. “The introduction of social capital for medical treatment and the abolition of drug additions in public hospitals are a general trend, and the progress of this reform will be accelerated in the future. The main direction of hospital development in the future is medical services. Already some provinces and cities have begun trying to eliminate drug additions in hospitals. We will increase profitability in medical services,” Chen Guodong told reporters. At present, some listed companies such as Aier Ophthalmology and Fosun Pharma have laid out their medical service businesses in advance.

It is understood that the reform of public hospitals is the highlight of health care reform. At the just-concluded “two sessions” in the country, the promotion of medical reforms to the depth of development has once again become the most eye-catching word in the medical and health field. The public hospitals that concentrate more quality resources and are more difficult to reform are still the biggest breakthrough in medical reform.

On March 5, the State Council Premier Li Keqiang pointed out in the government work report that in 2014, it is necessary to promote the reform of medical reforms in depth, among which the pilots for the comprehensive reform of urban public hospitals should be expanded. Li Bin, director of the National Health and Family Planning Commission, also said that this year will expand to at least one city in each province to carry out comprehensive reform of public hospitals.

In the key reforms announced yesterday, Li Keqiang pointed out that orderly relaxation of social forces for medical access, equal treatment in medical insurance fixed point, job title assessment, grade review, etc. Implementing doctors' multi-practice policy and stressing that it will “reduce the proportion of foreign ownership of joint ventures and cooperative medical institutions”.

It is understood that many provinces and cities have already tried to crack down on the "public hospital reform" this hard bone. Recently, Guangdong has made new breakthroughs in deepening the reform of the medical and health system. The restructuring plan of the Sixth Hospital of Sun Yat-sen University has recently been approved by the provincial government. The institute will introduce private capital and explore new models of mixed ownership institutions.

Regarding the State Department's reference to "this year's county-level public hospitals reform pilots cover more than 50% of the country's counties (cities)", analyst Fang Ya Securities pharmaceutical industry Liu Yaming told the Securities Times reporter that China has more than 2,800 county-level administrative units, "More than 50% of the nationwide coverage" is more extensive than the previous "covering 1,000 counties." The medical reform is a continuous good for the pharmaceutical industry, and the expectations of the industry will be gradually honored.

When interviewed by the Securities Times reporter, Jiang Guangze, a professional investor, also said that the deepening of the medical reform content has, on the whole, further satisfied people's demand for medical services. Pharmaceutical listed companies will benefit systematically.