Cheaper drugs, revamped fees are healthy steps for Hong Kong

South China Morning Post

a day ago

The accessible and affordable world-class public health system Hong Kong enjoys – and expects – comes at an ever-increasing price, amid an ageing society and the rising costs of medical and pharmaceutical advances. A
revamp of the fee structure from next year, to recover more of the spiralling costs to the government's budget, was inevitable. Rightly, it is subject to measures to safeguard access for the most vulnerable members of society.
It is good, therefore, to learn the government is going on the front foot in negotiations with pharmaceutical companies to get the best deals for many of the drugs that public patients need and the best value for the massive public investment in healthcare.
As a result, patients can soon expect to pay about
20 per cent less for some drugs. Hospital Authority chief executive Dr Tony Ko Pat-sing anticipates savings to public funds of at least HK$1 billion (US$127 million) from measures including drug price reductions and expansion of sources of supplies.
This is thanks in large part to a greater emphasis on a thorough procurement process. The Hospital Authority's chief pharmacist, William Chui Chun-ming, says when hospital drugs are reasonably priced, the authority can use the money saved to buy more new drugs or extend the range in stock.
So far, he says, 70 per cent of drug makers, mostly from foreign countries, are willing to give discounts of an average of 20 per cent. The authority's negotiators used as a reference drug prices offered under the mainland's medical insurance system, which are generally lower due to the bargaining power of bulk procurement for a huge population. Beijing said last year that this had saved patients more than 880 billion yuan (US$123 billion).
The potential for cost-effective optimisation of access to the latest pharmaceutical drugs will be enhanced by Hong Kong's aspiration to become an international medical and innovation hub, including a recognised clinical drug-trial centre. Chui said the authority would also monitor drugs in phase three clinical trials and approach developers for access to data with a view to adoption in public hospitals soon.