China's State Council Issues Guidelines to Promote Healthy Development of Pharmaceutical Industry, Boosting Internet Healthcare Sector

(March 11), the Chinese government website publicly released Document No. 11 [2016] of the General Office of the State Council, namely the “Guiding Opinions on Promoting the Healthy Development of the Pharmaceutical Industry.” VCBeat has excerpted some key policies related to the internet healthcare industry from the document.

1.Accelerate the transformation and upgrading of medical devices. Prioritize the development of digital detectors, superconducting magnets, and high-heat-capacityXKey components such as X-ray tubes, precise surgical positioning and navigation, data acquisition, processing and analysis, and biological three-dimensional (3D) printing and other technologies.Development of nuclear medicine imaging equipment including PET-CT and PET-MRI, superconducting magnetic resonance imaging (MRI) systems, multi-slice spiral CT, color ultrasound diagnosis, image-guided radiation therapy, and proton/heavy ion tumor therapy,High-performance diagnostic and therapeutic equipment, including medical robots, health monitoring devices, and telemedicine systems.Promote the industrialization of in vitro diagnostic equipment and supporting reagents, such as fully automated biochemical analyzers, chemiluminescence immunoassay analyzers, high-throughput gene sequencers, and five-part differential hematology analyzers. Develop high-end implantable and interventional products, including heart valves, cardiac pacemakers, fully bioresorbable vascular stents, artificial joints and spinal implants, and cochlear implants, as well as mid-to-high-end rehabilitation assistive devices. Actively explore the research and development of medical devices based on Traditional Chinese Medicine theories.

2. Establish a modern marketing model.Improve enterprise logistics information systems, fully leverage the information resources of provincial centralized drug procurement platforms, and establish a national drug information platform to publicly disclose data on drug prices, usage volumes, quality, and distribution channels, thereby facilitating public oversight and establishing mechanisms for information sharing and feedback-based traceability.Establish a modern pharmaceutical distribution system, promote the construction of drug distribution and delivery networks by large enterprises that cover both urban and rural areas, fully leverage the logistical network advantages of postal and express delivery companies, and enhance the capacity to ensure drug supply in grassroots and remote regions.

Promote the specialized and distinctive development of small and medium-sized circulation enterprises, encouraging them to refine their expertise and specialize in their fields to meet multi-tiered market demands. In accordance with the requirements of the new version of the Good Supply Practice (GSP) for Pharmaceutical Products, encourage leading retail enterprises to adopt chain operation models, implementing unified procurement and distribution, quality management, service standards, information management, and brand identity, thereby enhancing the standardization and scale of chain pharmacy operations.Promote the establishment of an open-source code regime for medical devices covering communication protocols, fault feedback, and inspection and maintenance, while encouraging the development of third-party professional teams for maintenance, repair, and after-sales services.

3. Improve the medical service system. Accelerate the reform of the compensation mechanism for public hospitals, establish a scientific and reasonable assessment, reward, and punishment system, strengthen the management of diagnosis and treatment behaviors in conjunction with the implementation of policies such as the separation of prescribing from dispensing and the elimination of drug markups, prevent irregular practices such as overtreatment, and control medical expenses.Medical institutions shall prescribe medications using their generic names and proactively provide prescriptions to patients, thereby safeguarding patients' right to choose where to purchase their medications;Based on the affordability of the medical insurance fund,Timely include drugs, medical devices, and diagnostic and treatment items that meet the criteria, are reasonably priced, and have independent intellectual property rights in the scope of medical insurance coverage in accordance with prescribed procedures.Improve the policy for catastrophic illness protection, and comprehensively carry out medical assistance for major and critical diseases.Vigorously develop commercial health insurance,To meet the diverse societal needs for health protection and pharmaceutical products.

4. Build intelligent demonstration factories.Promote the intelligentization of pharmaceutical production processes and carry out demonstration projects for the construction of smart factories and digital workshops. Accelerate the application of technical equipment such as human-machine intelligent interaction and industrial robots in pharmaceutical production, driving process simulation optimization, real-time feedback of status information, and adaptive control. Apply technologies such as big data, cloud computing, the Internet, and additive manufacturing to establish new production models, including dynamic perception of consumer demand for pharmaceutical products, crowdsourced design, and personalized customization.

Accelerate the digitalization and intelligent upgrading of medical device products, with a focus on developing wearable, portable, and other mobile health and assistive technology products, and promote biological three-dimensional (3D) Application of new technologies such as 3D printing and data chips in implantable and interventional products.Promote the intelligent upgrading of pharmaceutical production equipment, accelerate the research and development and industrialization of core technical equipment such as industrial control systems and intelligent sensing components, and support the construction of smart factories in the pharmaceutical industry.

5. Implement intelligent medical services.Leverage the leading role of high-quality medical resources,Encourage the participation of social forces, integrate online and offline resources, and standardize the Internet of Medical Things (IoMT) and health and medical applications (APP) management. Actively develop convenient online services, including health consultations, appointment scheduling, wait-time notifications, price estimation and payment, and access to diagnostic reports. Strengthen the integration of regional medical and health service resources, encourage healthcare institutions to establish health information service platforms, and actively provide internet-based healthcare information services. Guide medical institutions in adopting informatization and intelligent technologies to deliver telemedicine services—such as remote pathology diagnosis, imaging diagnosis, expert consultations, monitoring guidance, and surgical guidance—to grassroots, remote, and underdeveloped areas.

6.Leverage the spillover effects of the electronics, information technology, and equipment manufacturing industries in central cities with advantages in talent and technology to establish R&D and industrialization bases for high-end medical devices.Guide eligible regions to leverage local advantages in medical care, traditional Chinese medicine, and eco-tourism, harness the role of the tourism market, and develop a batch of demonstration bases for medical and health tourism that integrate elderly care, medical treatment, rehabilitation, and tourism, thereby further improving the comprehensive system of social services for elderly care, medical treatment, rehabilitation, and tourism.

7、Leverage information technologies such as databases, computer screening, and the Internet to build public service platforms for pharmaceutical product technology R&D, industrialization, safety evaluation, and clinical evaluation.Actively develop makerspaces and vigorously promote mass entrepreneurship and innovation.Cultivate a group of innovative small and medium-sized enterprises with specialized technologies and high-end talent,Promote the transformation of contract research organizations (CROs) toward end-to-end innovation and enhance their capability in developing new pharmaceutical products.