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    Home > Medical News > Latest Medical News > Drug rebates, medical corruption, will become the focus of future investigation and prosecution!

    Drug rebates, medical corruption, will become the focus of future investigation and prosecution!

    • Last Update: 2021-03-22
    • Source: Internet
    • Author: User
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      This time the Ministry of Finance issued a document that takes Shandong Province as a typical example, or means that in the future, regular audits of key listed companies and large-scale pharmaceutical companies will be conducted, and industry problems may be discovered, which may cause common problems such as high rebates and high sales expenses.
    Form a containment effect.
     
      Individual: filing system
     
      Whether it is drug rebates, bribery, or false value-added tax invoices, they basically serve the original drug promotion method-sales with gold.
     
      In addition to the above measures to monitor the pharmaceutical companies themselves, from the perspective of individual pharmaceutical representatives, gray promotion behavior will also be regulated and restricted.
     
      The Administrative Measures for the Recordation of Medical Representatives, which have been formally implemented on December 1, 2020, clearly stipulate that medical representatives shall not perform the following behaviors: conduct academic promotion and other activities without recording; undertake the task of drug sales, implement payment collection and process purchase and sales receipts and other sales Behavior; Participate in the statistics of the number of drug prescriptions issued by individual doctors, etc.
     
      It is understood that after the registration system for medical representatives is officially launched, drug marketing authorization holders need to enter, change, confirm, and delete their medical representative information as required on the registration platform designated by the State Drug Administration, and medical institutions can check and verify on the registration platform Record information of medical representatives, so that medical institutions can more quickly and accurately identify the identities of regular medical representatives, and ensure the compliance of the purchase and sale of medicines.
     
      When a drug marketing license holder or a medical representative grants property or other illegitimate benefits to the persons who use the drug, they will face severe investigations and punishments by the Drug Administration Law and other relevant laws and regulations.
      Pharmaceutical Network News on March 9th.
    Drug rebates and medical corruption will become the focus of future investigations by relevant departments
     
      Medical representative, under investigation
     
      Recently, China Procuratorate published an indictment from the People’s Procuratorate of Wangcang County, Sichuan Province.
    The defendant Xu Moumou used his position to help medical representatives Zhu Moumou, Tang Moumou, and Wang Moumou to promote his presence in the hospital.
    pharmnet.
    com.
    cn/agent_product/" target="_blank">Agent sales of drugs promoted the increase in drug sales.
    The total benefit fee and drug rebates were collected 3,795,553,15 million yuan.
    After paying the doctor’s drug rebates, a total profit of 5,986,895,300 yuan was paid.
    After the fees were 2.
    53553.
    1 million yuan, the defendant Xu actually made a profit of 3.
    483422 million yuan.
     
      Since then, the case was investigated and terminated by the Wangcang County Supervisory Committee of Guangyuan City.
    The defendant Xu XX was suspected of taking bribes and the defendant Wen XX was suspected of taking bribes, and was transferred to this court for review and prosecution on December 20, 2020.
     
      In fact, in recent times, cases of bribery involving medical representatives of state workers have occurred frequently.
     
      The network of interests and relationships hidden in the field of medicine is far more than this: unspoken rules prevail in the procurement of medical devices and consumables; red envelope rebates are rampant; the black chain of interests covers multiple departments such as cardiology, cardiology, and neurology.
    In a previous investigation program broadcast by CCTV, 61 medical representatives suspected of commercial bribery were arrested by the public security department.
     
      Since last year, corruption kickback cases in the medical field have been the focus of the Central Commission for Discipline Inspection.
     
      On February 19, the National Supervision Commission of the Central Commission for Discipline Inspection published an article "Eradication of the Breeding Soil of Medical Corruption" on the important news section of the official website, again naming the issue of medical corruption.
    In addition, the annual reports of more than 290 listed pharmaceutical companies across the country were collected to analyze and interpret sales expenses.
    Finally, many management loopholes and blind spots in supervision were dug out, and they were targeted for in-depth rectification.
     
      At the same time, the Central Commission for Discipline Inspection pointed out in the article "Observation of Upright Trends and Anti-Corruption in Key Fields and Thorough Investigation of Medical Corruption", it is pointed out that serious violations of discipline and laws in the medical field must be resolutely investigated.
    The article shows that in the medical field of corruption cases, rebates for medicines and consumables are the most frequently encountered issue, the amount of money involved remains high, and the chain of corruption interests is intertwined.
     
      Credit evaluation: collecting typical cases
     
      As the anti-corruption work of medicine has become the focus of the work of relevant departments, the curse that restricts it has also begun to take effect.
     
      A few days ago, the "Pharmaceutical Price and Recruitment Credit Evaluation Operation Specification (2020 Edition)" (hereinafter referred to as the "Specification") and the "Pharmaceutical Price and Recruitment Credit Rating Discretionary Benchmark (2020 Edition)" issued by the National Medical Security Administration have been Landed within the provinces.
     
      The "Specifications" clarify the scope of evaluation, that is , the implementation of laws and regulations prohibited by laws and regulations in the process of pricing, marketing, bidding, and performance of pharmaceutical companies to obtain illegitimate benefits, such as giving rebates or other illegitimate benefits in the purchase and sale of pharmaceuticals.
    Wait.
     
      It is worth noting that in a medical insurance document circulated before, it is clearly required to implement detailed medical prices and a credit evaluation system for recruitment and procurement, to achieve the basic coverage of the national pharmaceutical companies’ trustworthy commitments, focusing on the granting of rebates and illegal price increases.
    A batch of typical models that have achieved governance statutes.
     
      To some extent, as credit evaluation becomes a key task of the National Medical Insurance Administration in 2021, a number of typical cases will be produced in the future to curb the effects, and pharmaceutical companies must raise their compliance awareness to the highest warning line.
     
      The "Specifications" show that medical commercial bribery such as giving kickbacks to medical institutions at all levels and various types, centralized procurement institutions and their staff will be assessed on the level of untrustworthiness based on the amount, ranging from normal, moderate, serious, and particularly serious.
    .
     
      If they enter the blacklist, companies and individuals will face a series of disciplinary measures such as being restricted from engaging in bidding activities, canceling the qualification for financial subsidies, strengthening tax monitoring and management, and raising loan interest rates.
     
      Based on the credit ratings of pharmaceutical companies, centralized procurement agencies adopt written reminders, rely on the centralized procurement platform to prompt purchasers of risk information, suspend bidding and listing of related drugs or medical consumables, and suspend the supply and distribution of bid-winning drugs or medical consumables qualifications.
    In other words, once there is a problem with the credit rating, it will directly have a profound impact on the promotion behavior of pharmaceutical companies and the admission of products to hospitals.
     
      Financial means: check accounts, check sales expenses
     
      Especially for listed pharmaceutical companies, the problem of rebates is directly reflected in the indicator of sales expenses.
    After all, high sales are a common feature of the pharmaceutical industry, and marketing expenses of some companies are as high as 60%, which has become the focus of auditing.
     
      In early January, the Ministry of Finance of the People's Republic of China issued an article "Shandong Supervision Bureau of the Ministry of Finance: A New Chapter for Accounting Supervision", which further clarified the direction of future financial supervision.
    The meeting showed that it is necessary to make good use of accounting information quality inspection methods, focus on key enterprises and accounting firms and asset appraisal agencies with large scale of business and high risk of practice, and severe penalties for irregularities and corporate accounting frauds in annual report audits.
     
      The documents show that it is necessary to adhere to the combination of daily supervision and special inspections to improve the pertinence and effectiveness of supervision.
    Effectively improve the efficiency of supervision by distinguishing the classified supervision methods of key enterprises and general enterprises.
    Select key companies to conduct omni-directional and multi-dimensional daily supervision, and comprehensively use various methods such as seminars, interviews, interviews, questionnaires, and big data analysis to find industry-specific, trending, and emerging issues, and provide clues and information for special inspections.
    guide.
    With regard to the deep-seated problems found in the special inspection, breakthroughs should be made in a focused manner, involving policy implementation, standard implementation, and system loopholes.
    Actively think and conduct in-depth discussions to provide the Ministry of Finance with a basis for decision-making.
     
      This time the Ministry of Finance issued a document that takes Shandong Province as a typical example, or means that in the future, regular audits of key listed companies and large-scale pharmaceutical companies will be conducted, and industry problems may be discovered, which may cause common problems such as high rebates and high sales expenses.
    Form a containment effect.
     
      Individual: filing system
     
      Whether it is drug rebates, bribery, or false value-added tax invoices, they basically serve the original drug promotion method-sales with gold.
     
      In addition to the above measures to monitor the pharmaceutical companies themselves, from the perspective of individual pharmaceutical representatives, gray promotion behavior will also be regulated and restricted.
     
      The Administrative Measures for the Recordation of Medical Representatives, which have been formally implemented on December 1, 2020, clearly stipulate that medical representatives shall not perform the following behaviors: conduct academic promotion and other activities without recording; undertake the task of drug sales, implement payment collection and process purchase and sales receipts and other sales Behavior; Participate in the statistics of the number of drug prescriptions issued by individual doctors, etc.
     
      It is understood that after the registration system for medical representatives is officially launched, drug marketing authorization holders need to enter, change, confirm, and delete their medical representative information as required on the registration platform designated by the State Drug Administration, and medical institutions can check and verify on the registration platform Record information of medical representatives, so that medical institutions can more quickly and accurately identify the identities of regular medical representatives, and ensure the compliance of the purchase and sale of medicines.
     
      When a drug marketing license holder or a medical representative grants property or other illegitimate benefits to the persons who use the drug, they will face severe investigations and punishments by the Drug Administration Law and other relevant laws and regulations.
      Pharmaceutical Network News on March 9th.
    Drug rebates and medical corruption will become the focus of future investigations by relevant departments
     
      Medical representative, under investigation
      Medical representative, under investigation
     
      Recently, China Procuratorate published an indictment from the People’s Procuratorate of Wangcang County, Sichuan Province.
    The defendant Xu Moumou used his position to help medical representatives Zhu Moumou, Tang Moumou, and Wang Moumou to promote his presence in the hospital.
    pharmnet.
    com.
    cn/agent_product/" target="_blank">Agent sales of drugs promoted the increase in drug sales.
    The total benefit fee and drug rebates were collected 3,795,553,15 million yuan.
    After paying the doctor’s drug rebates, a total profit of 5,986,895,300 yuan was paid.
    After the fees were 2.
    53553.
    1 million yuan, the defendant Xu actually made a profit of 3.
    483422 million yuan.
    pharmnet.
    com.
    cn/agent_product/" target="_blank">Agentpharmnet.
    com.
    cn/agent_product/" target="_blank"> Agent Agent
     
      Since then, the case was investigated and terminated by the Wangcang County Supervisory Committee of Guangyuan City.
    The defendant Xu XX was suspected of taking bribes and the defendant Wen XX was suspected of taking bribes, and was transferred to this court for review and prosecution on December 20, 2020.
     
      In fact, in recent times, cases of bribery involving medical representatives of state workers have occurred frequently.
     
      The network of interests and relationships hidden in the field of medicine is far more than this: unspoken rules prevail in the procurement of medical devices and consumables; red envelope rebates are rampant; the black chain of interests covers multiple departments such as cardiology, cardiology, and neurology.
    In a previous investigation program broadcast by CCTV, 61 medical representatives suspected of commercial bribery were arrested by the public security department.
    Medical equipment medical equipment medical equipment
     
      Since last year, corruption kickback cases in the medical field have been the focus of the Central Commission for Discipline Inspection.
     
      On February 19, the National Supervision Commission of the Central Commission for Discipline Inspection published an article "Eradication of the Breeding Soil of Medical Corruption" on the important news section of the official website, again naming the issue of medical corruption.
    In addition, the annual reports of more than 290 listed pharmaceutical companies across the country were collected to analyze and interpret sales expenses.
    Finally, many management loopholes and blind spots in supervision were dug out, and they were targeted for in-depth rectification.
     
      At the same time, the Central Commission for Discipline Inspection pointed out in the article "Observation of Upright Trends and Anti-Corruption in Key Fields and Thorough Investigation of Medical Corruption", it is pointed out that serious violations of discipline and laws in the medical field must be resolutely investigated.
    The article shows that in the medical field of corruption cases, rebates for medicines and consumables are the most frequently encountered issue, the amount of money involved remains high, and the chain of corruption interests is intertwined.
    Medicine, medicine, medicine
     
      Credit evaluation: collecting typical cases
      Credit evaluation: collecting typical cases
     
      As the anti-corruption work of medicine has become the focus of the work of relevant departments, the curse that restricts it has also begun to take effect.
    Medicine Medicine Medicine
     
      A few days ago, the "Pharmaceutical Price and Recruitment Credit Evaluation Operation Specification (2020 Edition)" (hereinafter referred to as the "Specification") and the "Pharmaceutical Price and Recruitment Credit Rating Discretionary Benchmark (2020 Edition)" issued by the National Medical Security Administration have been Landed within the provinces.
     
      The "Specifications" clarify the scope of evaluation, that is , the implementation of laws and regulations prohibited by laws and regulations in the process of pricing, marketing, bidding, and performance of pharmaceutical companies to obtain illegitimate benefits, such as giving rebates or other illegitimate benefits in the purchase and sale of pharmaceuticals.
    Wait.
    Enterprise business enterprise
     
      It is worth noting that in a medical insurance document circulated before, it is clearly required to implement detailed medical prices and a credit evaluation system for recruitment and procurement, to achieve the basic coverage of the national pharmaceutical companies’ trustworthy commitments, focusing on the granting of rebates and illegal price increases.
    A batch of typical models that have achieved governance statutes.
     
      To some extent, as credit evaluation becomes a key task of the National Medical Insurance Administration in 2021, a number of typical cases will be produced in the future to curb the effects, and pharmaceutical companies must raise their compliance awareness to the highest warning line.
     
      The "Specifications" show that medical commercial bribery such as giving kickbacks to medical institutions at all levels and various types, centralized procurement institutions and their staff will be assessed on the level of untrustworthiness based on the amount, ranging from normal, moderate, serious, and particularly serious.
    .
     
      If they enter the blacklist, companies and individuals will face a series of disciplinary measures such as being restricted from engaging in bidding activities, canceling the qualification for financial subsidies, strengthening tax monitoring and management, and raising loan interest rates.
     
      Based on the credit ratings of pharmaceutical companies, centralized procurement agencies adopt written reminders, rely on the centralized procurement platform to prompt purchasers of risk information, suspend bidding and listing of related drugs or medical consumables, and suspend the supply and distribution of bid-winning drugs or medical consumables qualifications.
    In other words, once there is a problem with the credit rating, it will directly have a profound impact on the promotion behavior of pharmaceutical companies and the admission of products to hospitals.
     
      Financial means: check accounts, check sales expenses
      Financial means: check accounts, check sales expenses
     
      Especially for listed pharmaceutical companies, the problem of rebates is directly reflected in the indicator of sales expenses.
    After all, high sales are a common feature of the pharmaceutical industry, and marketing expenses of some companies are as high as 60%, which has become the focus of auditing.
     
      In early January, the Ministry of Finance of the People's Republic of China issued an article "Shandong Supervision Bureau of the Ministry of Finance: A New Chapter for Accounting Supervision", which further clarified the direction of future financial supervision.
    The meeting showed that it is necessary to make good use of accounting information quality inspection methods, focus on key enterprises and accounting firms and asset appraisal agencies with large scale of business and high risk of practice, and severe penalties for irregularities and corporate accounting frauds in annual report audits.
     
      The documents show that it is necessary to adhere to the combination of daily supervision and special inspections to improve the pertinence and effectiveness of supervision.
    Effectively improve the efficiency of supervision by distinguishing the classified supervision methods of key enterprises and general enterprises.
    Select key companies to conduct omni-directional and multi-dimensional daily supervision, and comprehensively use various methods such as seminars, interviews, interviews, questionnaires, and big data analysis to find industry-specific, trending, and emerging issues, and provide clues and information for special inspections.
    guide.
    With regard to the deep-seated problems found in the special inspection, breakthroughs should be made in a focused manner, involving policy implementation, standard implementation, and system loopholes.
    Actively think and conduct in-depth discussions to provide the Ministry of Finance with a basis for decision-making.
     
      This time the Ministry of Finance issued a document that takes Shandong Province as a typical example, or means that in the future, regular audits of key listed companies and large-scale pharmaceutical companies will be conducted, and industry problems may be discovered, which may cause common problems such as high rebates and high sales expenses.
    Form a containment effect.
     
      Individual: filing system
      Individual: filing system
     
      Whether it is drug rebates, bribery, or false value-added tax invoices, they basically serve the original drug promotion method-sales with gold.
     
      In addition to the above measures to monitor the pharmaceutical companies themselves, from the perspective of individual pharmaceutical representatives, gray promotion behavior will also be regulated and restricted.
     
      The Administrative Measures for the Recordation of Medical Representatives, which have been formally implemented on December 1, 2020, clearly stipulate that medical representatives shall not perform the following behaviors: conduct academic promotion and other activities without recording; undertake the task of drug sales, implement payment collection and process purchase and sales receipts and other sales Behavior; Participate in the statistics of the number of drug prescriptions issued by individual doctors, etc.
     
      It is understood that after the registration system for medical representatives is officially launched, drug marketing authorization holders need to enter, change, confirm, and delete their medical representative information as required on the registration platform designated by the State Drug Administration, and medical institutions can check and verify on the registration platform Record information of medical representatives, so that medical institutions can more quickly and accurately identify the identities of regular medical representatives, and ensure the compliance of the purchase and sale of medicines.
     
      When a drug marketing license holder or a medical representative grants property or other illegitimate benefits to the persons who use the drug, they will face severe investigations and punishments by the Drug Administration Law and other relevant laws and regulations.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

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