Lei Jufang, Chairperson of Qizheng Tibetan Medicine: The compilation of classic formulations of ethnic medicines has yet to be initiated. I recommend prioritizing their approval for development and utilization.

　　Recently, the 2017 edition of the National Medical Insurance Catalog was officially released. The catalog added more than 40 ethnic medicines, representing a significant increase. “This demonstrates the nation’s strong emphasis on and support for the development of ethnic medicines,” said Lei Jufang, Chairperson of Qizheng Tibetan Medicine and a member of the National Committee of the Chinese People's Political Consultative Conference, who has been dedicated to the development of ethnic medicines for many years, in an interview with a reporter from the Securities Daily. She noted that ethnic medicines are poised for double-digit growth in the future, but achieving this goal will require further policy support.

　　It is recommended to prioritize the development of a classic catalog of ethnic medicines.

　　During a press conference, Lei Jufang put forward the “Proposal on Suggesting the Priority Establishment of a Catalog of Time-Honored Formulas for Ethnic Medicines and Approving Their Development.” She noted that the “Law on Traditional Chinese Medicine” has epochally emphasized the importance of developing ancient time-honored formulas and has clearly defined the development path for these classic prescriptions. However, the compilation of a catalog of time-honored formulas for TCM and ethnic medicines from Tibet, Mongolia, and Uyghur regions has not been carried out in parallel.

　　According to Lei Jufang, taking Tibetan medicine as an example, the "Four Medical Tantras," written in the 8th century AD, contains 443 classic prescriptions, most of which are still in clinical use today. Among these, only a few dozen have been developed into nationally approved pharmaceutical formulations.

　　“Under the leadership of the relevant authorities, the compilation of classic traditional Chinese medicine formulas has already laid a solid foundation over several years. However, the compilation and cataloging of classic formulas from ethnic groups such as Tibetan, Mongolian, and Uyghur have yet to be initiated. Therefore, we urge the competent authorities for TCM and the drug regulatory agencies to, in accordance with the spirit of the ‘Traditional Chinese Medicine Law,’ prioritize the compilation and cataloging of ancient ethnic classic formulas that ‘remain widely used today, have proven efficacy, and possess distinct characteristics and advantages,’ complete their formulation, and approve their development and utilization,” said Lei Jufang.

　　Lei Jufang suggested that, under the unified guidance of the National Administration of Traditional Chinese Medicine, ethnic autonomous regions or influential national medicine industry associations should be entrusted with organizing experts in ethnic medicine to develop selection criteria for classic prescriptions from various ethnic groups and compile a corresponding catalog. This catalog would then be jointly reviewed and approved by the National Administration of Traditional Chinese Medicine and the National Medical Products Administration, with priority given to approving their development and utilization. “This will enable the ethnic medicine industry to quickly reap the policy benefits brought about by the ‘Law on Traditional Chinese Medicine.’”

　　Lei Jufang introduced that the current market size for ethnic medicines stands at 2 billion yuan, and in the future, it is expected to reach 20 billion yuan. However, achieving this goal will require greater policy support.

　　Lei Jufang stated that the growth and development of traditional ethnic medicines is a process driven by market recognition. Enterprises will also step up their marketing efforts to ensure that more patients, doctors, and hospitals become aware of, understand, and trust these medicines. “We are also seeking policy support to further promote the development of traditional ethnic medicines.”

　　Reduce the proportion of drug costs to prevent a one-size-fits-all approach.

　　In addition to focusing on the development of traditional ethnic medicines, Lei Jufang also brought along the “Proposal for Reflecting on the ‘Drug-to-Treatment Ratio’” this time.

　　Reducing the “drug-to-total-revenue ratio” is one of the key objectives of China’s healthcare reform. On May 17, 2015, the General Office of the State Council issued the “Guiding Opinions on Pilot Comprehensive Reform of Public Hospitals in Urban Areas,” which proposed further expanding the pilot program for comprehensive reform of public hospitals in urban areas in 2015, with the goal of bringing the overall drug-to-total-revenue ratio in pilot public hospitals down to around 30% by 2017.

　　Lei Jufang believes that controlling the proportion of drug costs cannot fundamentally address the issues of healthcare supply inducing demand and the challenge of controlling medical expenses. On the contrary, it may only distort hospitals further, leaving patients in an increasingly difficult situation where the more they are “regulated,” the lower their welfare may become.

　　Lei Jufang suggested that the drug-to-total-cost ratio is a macro-level requirement for hospitals, and the health authorities should introduce policies to treat different diseases differently based on their specific characteristics. She proposed exploring the possibility of excluding certain special diseases—such as mental illnesses—as well as chronic conditions like hypertension and diabetes—from the drug-to-total-cost ratio assessment.

　　In addition, she also suggested shifting from controlling the “proportion of drug costs” to implementing a “prescription review system.” For instance, a provincial-level platform could be established to conduct prescription reviews, with a team of expert reviewers assembled to upload and randomly sample prescriptions from all public hospitals for evaluation. “This approach would exert an invisible deterrent effect on practices such as excessive prescribing, duplicate prescriptions, and the overuse of ancillary drugs, thereby ensuring that prescriptions are more rational and appropriate.”

　　Reporting media: Securities Daily

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