November 12, 2007. Shanghai Campus - Less than a month after the successful staging of the third annual China Healthcare Industry Forum, CEIBS facilitated, once again, stimulating discussion about the health care sector by hosting the taping of CBN TV's show, Brainstorm.

By examining "The Difficulty in Visiting Doctors and the High Cost of Medical Care", the event gave medical experts, hospital heads, entrepreneurs, patients and lawyers an opportunity to tackle the hot topic of the ongoing reform of China's healthcare sector. It also gave participants an opportunity to outline their ideas on the direction the reform should take.

CBN and Dragon TV will broadcast the show in two phases on November 18th and 25th and rebroadcast it four times afterwards. This was the second time the show was being taped at CEIBS, a collaboration between the school's Marketing and Communications Department and CBN television Channel.
The guests included:
- Li Lin, Deputy Director and Professor of China Economy Research Centre, Peking University;
- Liu Yuanli, Director of 'China Action Plan' of School of Public Health, Harvard University;
- Fan Guangrong, President of Renji Hospital;
- Yuan Kejian, Vice President of Ruijin Hospital and alumni of CEIBS hospital management class;
- Ding Qiang, Vice President of Huashan Hospital and also alumni of CEIBS hospital management class;
- Zhao Ming, Chairman of Adfaith Consulting;
- Shi Shusi, Editor of Workers'Daily;
- Pan Yuexin, Partner of Junhe Law Firm;
- Wang Liang, Director of Shanghai Liutong Research Institute;
- Zhang Weiliang, General Manager of Jiuzhitang; and
- Liu Xiangyue, General Manager of Shanghai Yifeng Drug Store Co., Ltd.



CEIBS hospital management class alumni, staff from Eli Lilly and Company, along with both industry and patient representatives were also among the approximately 150 people who actively participated in the taping of two-phased program.

Episode 1: The difficulty of visiting the doctor

At the beginning of the program Shi Shusi, Workers' Daily editor, told the audience about his 'miserable' experience when a 39-degree fever sent him to Beijing Xiehe Hospital in search of a doctor. He drew on his experiences there to highlight the all-too prevalent problems faced in seeking medical care and the high cost of treatment. President of Renji Hospital Fan Guangrong, Vice President of Reijin Hospital Yuan Kejian, and Vice President of Huashan Hospital Ding Qiang all expressed similar ideas about the cause of the problem. They told the audience that patients' misconceptions lead to glitches in the medical distribution system which then translates into mismatched supply and demand. According to the structural guidelines, a system of medical classification should be used. This would see minor illnesses treated at the small community hospitals or district-level hospitals, while patients with incurable diseases would seek help from three-tier hospitals. The rules are not been followed, however, with patients flocking to three-tier hospital regardless of the nature of their complaint.  This causes overcrowding in three-tier hospitals, overworking of their doctors, and a decline in the quality of medical services at these facilities.

This explanation from the hospital side elicited vigorous responses from other guests and commentators. Pan Yuexin, Partner of Junhe Law Firm, argued that it is perfectly reasonable for patients to prefer to use the services of doctors in big hospitals because these facilities have the best resources, are in the best locations, and employ the best doctors. Measures should be put in place, he said, to account for this natural preference.

Fan Guangrong, President of Renji Hospital (Left), Yuan Kejian, Vice President of Ruijin Hospital and alumni of CEIBS hospital (Middle), Ding Qiang, Vice President of Huashan Hospital and also alumni of CEIBS hospital (Right)

The topic then triggered a heated debate among scholars, high-level hospital representatives and other commentators. Each guest had a suggestion about changes that could tackle the problem of doctors' accessibility. For example Fan Guangrong, President of Renji Hospital, suggested strict adherence to the guidelines of the medical system that link the nature of the illness to specific locations. For his part, Professor Li Lin suggested the establishment of a people-focused healthcare insurance system as well as efforts to inform the general public how to achieve a healthy lifestyle. Professor Liu Yuanli's suggestion was for a two-pronged approach which would begin with the government informing the general public, on a timely basis, about the distribution and conditions of use for different kinds of medical resources. Secondly, he said, the vertical integration of medical resources should be strengthened.

Episode 2: High cost of medical care

Scholars and guests who participated in the show generally believe that the 'high cost of medical care' has become a common concern for everyone, with increasing administrative fees and the high cost of treatment forcing the general public to delay seeking treatment.

In addressing this concern about soaring medical costs, Fan Guangrong, President of Renji Hospital, made the point that high-quality service will cost more. In order to offer cutting-edge and top-quality service, he said, costly high-technology equipment has to be imported. He pointed out, however, that the hospital has tried to keep the cost of medicine at a reasonable level, adding only a five percent mark-up to the purchase price. Hospitals are not to blame for the high cost of medicine, he argued.

Professor Li Lin attributed the problem to the deficiencies that come with a medical system undergoing reformation within the wider context of changes taking place in China, as a whole. The result, she said, was a lack of a clear understanding of what and how to go public combined with uncertainty about the division of rights and responsibilities. In the past, state-owned hospitals were welfare-based, non-profitable institutions; but after reform and opening-up they received less financial support from the state. Currently this investment from the state is below 8%, so the hospitals need to generate profits in the market. This is complicated by the fact that medical expenses are under state control.
Professor Liu Yuanli was of the opinion that an unsound cost-sharing mechanism and insurance system is to blame for the high cost of medical care. The problem, he said, has resulted from a combination of individuals (as opposed to powerful insurance companies) footing the bills, the cost of acquiring new technology, and doctors'efforts to boost prices.

To combat the problem of costly medical care, Professor Liu suggested setting up an effective health insurance system, reducing patients' out-of pocket expenses, streamlining the pricing system for medication and prescribing medicine only as needed. Li Lin, on the other hand, looked at ways to cut costs without affecting the quality of care. He suggested the use of inexpensive but high-quality drugs and medical instruments.

Air Times for Brainstorm
On CBN:
Nov 18 , 2007 (Sunday), 22:00 -- First Episode
Nov 25, 2007 (Sunday), 22:00 -- Second Episode
Nov 24, 2007 (Saturday), 9:30, 13:30 -- replay
Nov 25 2007 (Sunday), 12:00 pm, 16:30 pm -- replay
On Dragon TV:
Nov 18, 2007 (Sunday) 23:15
Nov 25, 2007 (Sunday) 23:15
For more information, contact CEIBS Communications Manager Yuan Mei. 2890-5122 or ymei@ceibs.edu