On August 1, 2012, the Ministry of Health of China (“MOH”) issued the draft Guidance on Strengthening Anti-Bribery Control at Public Hospitals. The draft Guidance is intended to heighten requirements on how public hospitals should manage the procurement of drugs and medical devices from suppliers, and key requirements are as follows:
- When purchasing drugs and medical devices, hospitals should enter into an Integrity Agreement with suppliers which should contain provisions prohibiting commercial bribery.
- Hospitals should evaluate suppliers' anti-corruption compliance performance each year.
- Hospitals should blacklist suppliers that are found to have engaged in commercial bribery and stop purchasing products from them.
- Hospitals should establish their own centralized procurement procedures for drugs, consumables, devices, reagents, and other products exceeding a certain value or quantity that are not subject to the government’s procurement regulations.
- Donations by suppliers to hospitals should not contain any condition relating to the procurement of any goods or services. The financial department of the hospitals should manage the receipt and use of the donations, and internal departments or individual physicians within hospitals may not receive donations in their names.