BEIJING, Jan. 22 — China’s Ministry of Commerce and eight other government departments on Thursday issued the country’s first policy document specifically targeting the pharmaceutical retail sector, aiming to transform pharmacies into comprehensive “health stations” that serve public health needs in an improved manner.
The new policy emphasizes the enhancement of professional pharmaceutical services, health promotion and emergency supply capabilities.
It comes as the sector, which has long been a key component of China’s medical and health system, enters a critical phase of innovation-driven transformation amid rising public demand for quality health care, medicines and wellness services.
According to Ministry of Commerce data, China’s pharmaceutical distribution market expanded steadily during the 14th Five-Year Plan period (2021-2025), with annual sales rising from 2.41 trillion yuan (about 344 billion U.S. dollars) in 2020 to 2.95 trillion yuan in 2024.
The new policy has a three-pronged approach: empowerment, quality upgrading and accountability reinforcement. To empower pharmacies, it allows pharmaceutical retail chains to establish in-house pharmacy services platforms, enabling licensed pharmacists registered with headquarters to provide remote prescription reviews and medication counseling.
It also aligns outpatient insurance reimbursement policies for designated retail pharmacies with those of local primary health care institutions, meaning patients will be able to benefit from the same co-payment ratios, deductibles and coverage caps when they fill prescriptions at pharmacies as they would at clinics.
In a move to lower drug prices, the policy encourages retail pharmacies to participate in centralized drug-procurement programs. For medicines not covered by these programs, it promotes joint purchasing among retailers to leverage volume-based pricing and strengthen bargaining power.
On quality improvement, the document calls for a streamlined licensing process for pharmaceutical business permits, as well as the facilitation of retail-channel access for innovative drugs and reference-listed products.
It also supports mergers, acquisitions and integrated wholesale-retail operations to optimize supply chains and foster fair competition.
To reinforce accountability, the policy mandates enhanced emergency response functions. Large pharmacy chains are urged to develop dynamic demand forecasting and low-stock early-warning systems.
During public health emergencies or disasters, they are encouraged to offer 24-hour services, medicine-splitting services, free delivery and public health education, and to implement price stabilization measures. (Namibia Daily News/Xinhua)
