Foreign giants "kidnapped" high-end medical care?

According to the reporter, in the field of high-end medical equipment in China, GE has the highest market share and should be able to exceed half. Foreign giants are not just a monopoly on shares. Some hospitals even use "kidnapping" to describe the strong position of these foreign giants in China's high-end medical care, especially in the field of testing equipment.

Recently, some foreign media reported that Siemens, which is "smart in the market" in China's high-end medical equipment market, may be listed as an anti-monopoly investigation by Chinese regulators, and may also be suspected of bribing hospitals in exchange for equipment sales. The Chinese State Administration for Industry and Commerce is investigating the black hole that Siemens has in selling large medical equipment in China because it is suspected of engaging in commercial bribery in violation of China's Anti-Unfair Competition Law.

In China, Siemens was accused of donating medical equipment in exchange for an agreement with the hospital to use Siemens chemical reagents to run the equipment, and was suspected of bribing the hospital to purchase expensive disposable products on certain medical equipment. Not only that, but the news yesterday afternoon said that the investigation of China's industrial and commercial departments is not only the German Siemens, but also includes the United States GE (General Electric) and the Netherlands Philips. Yesterday evening, the State Administration for Industry and Commerce issued a response on its official website saying that the State Administration for Industry and Commerce did not conduct an investigation into Siemens' commercial bribery. Although the SAIC denied the rumored investigation of Siemens, according to the reporter of Beiqing Daily, these three are currently the Big Three in the Chinese medical market, and the overall market share exceeds 70%. Behind their strong market, the market share of Chinese-made medical equipment is less than 10%.

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GM, Philips and Siemens occupy more than 70% of China's high-end medical equipment market for CFP/CFP

Foreign giants have long been bribery

In fact, the news that the three giants are suspected of bribing the Chinese hospital in order to compete for the market is not the first public. A few years ago, the Chinese media published a survey by the US Department of Justice on Siemens’ global alleged commercial bribery. It shows that from March 2001 to September 2007, Siemens won the contract for infrastructure, globally. Commercial bribery is about 1.4 billion U.S. dollars, of which bribery in China mainly involves medical institutions, which is implemented by Siemens Medical Business. At the time, the US report showed that Siemens paid about $14.4 million in bribes to five hospitals in China, which resulted in nearly $300 million in medical equipment orders. Due to the exposure of commercial bribery, Siemens paid a fine of more than $1.3 billion to the US and German governments. However, after the news was noisy for a while, the government did not see any measures taken by government agencies. A person familiar with the matter disclosed to the reporter of Beiqing Daily that in fact, this had already attracted the attention of relevant government agencies and launched an investigation. However, due to the complexity of the investigation process, no conclusion was reached immediately.

In addition to Siemens, another foreign company was involved in the corruption case of Hao Heping, former director of the Medical Devices Division of the State Food and Drug Administration of China. "It is very difficult to get a list without bribery." At that time, the salesperson of the foreign company was also bitten out because of the bribery object and the director of a hospital was arrested, and eventually he was imprisoned for bribery.

The Big Three occupy more than 70% of the high-end medical equipment market

According to the Beiqing Daily reporter, GE has the highest market share in China's high-end medical equipment sector and should be able to exceed half. GE's medical equipment produced in China not only supplies the Chinese market, but also supplies the global market. At one time, 70% of GE's products produced in Beijing's production base will be exported overseas.

Siemens ranks second only to GE in the Chinese medical device market. Siemens has been producing CT machines in Shanghai since 1999, and quite a few of them are sold overseas. Due to the surge in business volume, Siemens built a new CT production plant in Pudong, Shanghai in 2003.

Compared with GE and Siemens, Philips Medical Systems entered China relatively late. Until 2004, Philips and Neusoft Digital Medical Systems Co., Ltd., a subsidiary of Neusoft Group of China, established Neusoft Philips Medical Systems to produce products for China and the global market. CT machine, X-ray machine, ultrasound equipment, etc. It is these three multinational giants that currently account for more than 70% of China's high-end medical equipment market.

Foreign giants not only monopolize but also "kidnapped" hospitals

Not only the monopoly on the share, but also the hospitals even use "kidnapping" to describe the strong position of these foreign giants in China's high-end medical care, especially in the field of testing equipment. One example is very obvious. In 2013, a foreign company was exposed in China to conceal information that the medical equipment was recalled due to defects. The product that the United States announced in June of that year was announced in China, but it was announced in October, and the information was recalled. The announcement is also unknown, and the words “recall” are often replaced by “free upgrade” and “technical maintenance”. In the face of public suspicion, the response of informed people is even more unexpected. They say that once a foreign-funded giant like this has a medical device recall, it is often most unwilling to disclose its recall information excessively. Big hospital.

This person said that the use of domestic hospital equipment is extremely high, many hospitals are even reluctant to stop the machine to accept the recall and other tests, and some may continue to use during the maintenance inspection. In this case, sometimes it is difficult for the company to make an appointment for home repair time, which causes the device to "run with disease." "In this case, once the patient finds that the device for medical examination is a recall, the doctor-patient dispute often occurs, and sometimes it is very serious. Therefore, many hospitals do not want the equipment manufacturers to disclose too much recall information. He said that manufacturers sometimes consider the hospital's needs, try to weaken the recall information, or avoid the word "recall", and rename it "free maintenance" or "technical upgrade." It can be seen that these equipment giants have a deep degree of “kidnapping” to Chinese hospitals.

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