Focusing on E-Prescriptions to Close the Loop in Pharmaceutical E-Commerce: Current Challenges and Legal Exploration

Online pharmaceutical sales represent a lucrative opportunity in the healthcare sector during the internet era. Not only do pharmaceutical company executives seek to market their products through online channels, but even tech giants like Jack Ma and Pony Ma are eager to secure a share of this market.

Approximately 80% of pharmaceutical sales revenue comes from prescription drugs. If prescription drugs are prohibited from online trading, it means that around 80% of drug sales cannot be conducted online, thereby limiting the role of e-commerce in pharmaceutical sales.

Finally, in May 2014, the “Measures for the Supervision and Administration of Online Food and Drug Operations (Draft for Comment)” was issued. It stipulated that online platforms with the corresponding qualifications could not only sell prescription drugs but also have them, along with medical devices, delivered by third-party logistics distribution platforms. The authority to approve third-party transaction qualifications was delegated to provincial-level drug regulatory authorities, and there was no requirement to operate offline chain pharmacies.

Just as everyone was overjoyed, the hospitals presented these companies with another challenge. Accustomed to the “drug-revenue-subsidized healthcare” model, hospitals are reluctant to cede prescription authority and pharmacy profits, viewing electronic prescriptions as core institutional information. Without access to electronic prescriptions, it is impossible to ascertain patient demand.

Although hospitals’ monopoly over prescribing rights prevents most internet healthcare companies from closing their business loops, some enterprises are still exploring ways to issue electronic prescriptions.

According to a VCBeat article“How to Issue an Electronic Prescription?”Statistics show that four entities—Guangdong Provincial Internet Hospital, mobile medical consultation apps, Wuzhen Internet Hospital, and Ali Health Internet Hospital—have already issued electronic prescriptions. Based on their experiences, the generation of an electronic prescription requires the following three conditions:

● Professional medical institutions as the foundation: Professional medical institutions are the main service providers.

● The service is primarily for follow-up and monitoring patients: online electronic prescriptions are not available to first-time patients.

● Policy support from government authorities: Government approval is an essential prerequisite.

 

Despite the emergence of representative enterprises, the outflow of electronic medical records (EMRs) still faces numerous challenges, making scalability difficult. What exactly are these issues? How can they be resolved? Fan Rong, Director of the Office for Doctor-Patient Relations at Beijing Tsinghua Changgung Hospital, will join the VCBeat VB Group interview on Wednesday at 8:00 PM (April 13) to discuss existing problems with electronic prescriptions and explore their legal validity.

Interested friends, please scan the QR code here to register!

The Necessity of Applying Electronic Signatures to Electronic Prescriptions

● Prescriptions and medical records are both classified as medical documentation.

● Evidentiary Nature of Medical Records

● Legality and Necessity of Electronic Signatures

● Definition of Electronic Prescription

Existing Challenges in the Promotion of Electronic Prescriptions

● Issues with Out-of-Hospital Prescription Purchases

● Signature and Sample Retention Issues

● Issues with the Drug Catalog

● Prescription Cancellation and Modification Issues

● Prescription Transmission Issues

● Data Security Issues

● Medical Insurance Reimbursement Issues

● Legal Liability Issues

Exploring Pathways to the Legitimacy of Electronic Prescriptions

● A Brief Analysis of Common Existing Models

● Application Forms of Electronic Signatures

● Several Approaches to Exploring Legally Compliant Electronic Prescriptions

● Highly Feasible E-Prescription Application Models

Guest Introduction

Fan Rong

Director, Office of Doctor-Patient Relations, Beijing Tsinghua Changgung Hospital

Attending Physician. Graduated with a degree in Clinical Medicine from the Medical College of Soochow University, and holds a Master’s degree in Public Health Management from Peking University Health Science Center. Previously served as Director of the Outpatient Department Office, Director of the Medical Insurance Office, Deputy Director of the Hospital Accreditation Office, and Chief of the Medical Affairs Section at Beijing Second Hospital, as well as Team Leader of the Medical Administration Group within the Department of Medical Affairs at Peking University International Hospital.

● Member, Medical Law Professional Committee of the Chinese Hospital Association

● Member, Chinese Medical Doctor Association; Center for Patient Safety and Doctor-Patient Relations Research, Peking University

● Deputy Secretary-General of the Beijing Association for the Promotion of Harmonious Doctor-Patient Relations

● Member, Patient Safety Professional Committee, Beijing Health Law Society

● Member of the Expert Pool for Medical Administration Access and Clinical Application Capability Assessment of Medical Technologies, Beijing Medical Association

● Special Editorial Board Member, “Medical Law” Column, China Medical Tribune

● Editorial Board Member, “Rights Protection Section” of *Physicians’ Daily*

● Drafting of the "Beijing Municipal Measures for the Prevention and Handling of Medical Malpractice"

● Legislative Drafting of the "Beijing Municipal Regulations on the Application and Management of Electronic Medical Records"

● Post-Legislative Study of the Regulations on the Administration of Medical Institutions

● Compilation and Interpretation of Medical Law with Analysis of Controversial Cases

● Practical Guide to Infection Prevention and Control in Dental Outpatient Clinics

● Legal Practice in Healthcare Institutions

● Practical Guide to People's Mediation of Medical Disputes

● "Medical Incident Warning Record"

Authored articles have been published multiple times in China Hospital CEO, China Health Talent, Health News, Physicians’ Daily, China Medical Tribune, and The Medical World Journal, and have been widely reposted by WeChat official accounts including “Health News,” “Health News · Physician Channel,” “Physicians’ Daily,” “The Medical World,” “Haitan Tege,” “Patient Safety Forum,” “Nannan Medical Talk,” and “Medical Legal Card.”

MediSign

China’s first professional application tool offering digital certificate management and e-signature services for physicians, and the preferred internet-based practice solution chosen by leading medical experts.

Beijing Certificate Authority Co., Ltd. (BJCA)

A leading, authoritative, and impartial third-party electronic certification service provider in China; an expert in network trust services with deep insights into the healthcare sector, co-creating a secure and trustworthy “Internet + Healthcare” ecosystem with you.