Southeast Asia

Vietnam medical ethics: A bitter pill
By Tran Dinh Thanh Lam

HO CHI MINH CITY - That doctors prescribe virtually the same drugs, some locally made and some imported, at vastly different prices is a reality many Vietnamese have been coming to terms with since the early 1990s when economic reforms, or doi moi, were first phased into this communist country.

Vietnam's socialist character has played a key role in lifting the nation's quality of health standards as a developing country. But economic liberalization has brought changes, including the deregulation of the drug industry, the effect of which worries some people.

The big difference in costs is due to the fact that the first doctor prescribed imported medicines that can cost many times more than local ones, even though their quality is comparable.

Of particular concern are reports that doctors are prescribing expensive drugs, not out of any great concern for the patient but to earn commissions from pharmaceutical corporations for pushing their product lines.

"Everybody knows that doctors [working for state-run hospitals] are generally poorly paid [about US$100 per month]. That is why asking some doctors to prescribe your products is not a very difficult thing," said pharmacist Dinh Ba Ai, head of the pharmaceutical department at the Union of Private Companies in Vietnam.

Ai was addressing an August seminar in Ho Chi Minh City that reviewed the price situation of imported medicine in the local market.

Vietnam relies heavily on imported medicines and more than 230 pharmaceutical companies from 28 countries have been licensed to operate in the country. India, France and Germany have the largest number of operations.

There are currently 15 wholly foreign-owned and eight joint-venture projects capitalized at a total of $186 million, but so far only two of these projects have started to manufacture drugs for the local market.

Although the Ministry of Health has repeatedly called for hospitals and health centers to stock locally made pharmaceuticals, the reality is that the majority of firms producing drugs locally do not use advanced technology and have limited production lines, leaving imported drugs to take up the slack.

But due to fierce international competition, foreign pharmaceutical companies are using all kinds of tactics to increase their share of the Vietnamese market.

These, industry experts say, include trying to lure doctors through gifts, special offers and monthly commissions to push certain product lines and get the doctors to use them instead of competitors' medicines.

"The practice is becoming an illness that hits more and more physicians. Commission rates [are getting] higher and higher too. From 10 percent in 1980, it doubled in 1990. Now, if you offer a commission lower that 30 percent, you will never be able to ask doctors to prescribe your products," Ai told the seminar.

Offers of trips abroad, another tactic used by the big firms, rarely fail to win a physician's heart, critics say. Doctors are often invited to visit pharmaceutical plants or to attend technical seminars abroad, but these trips are in fact paid holidays devised to reward doctors for their cooperation, experts at the seminar said.

"This is a very successful tactic. Once your travels have been paid from A to Z by the firm, it is rather difficult to refuse their demands," Ai said.

Dr Do Hoang Giao, deputy director of the People's Hospital of Gia Dinh in Ho Chi Minh City, explained that the reason behind doctor's high commissions was "the floating prices of imported medicine".

"Health authorities should have set a price framework for each category of imported medicine before allowing them to be sold on the market," Giao said.

To date, the government has yet to nominate a body whose responsibility it is to set the price of imported medicines.

According to figures released at the seminar, pharmaceutical firms increase the prices of imported drugs by 100-300 percent before putting them on the market. This means that Vietnamese people pay much more than their counterparts in the developed world for prescription drugs.

As a result of this unchecked pricing, experts say the Vietnamese public was "robbed" of more than VND3 trillion ($195 million) in 1999. The sum does not include the 5 or 10 percent surplus taken by wholesalers of drugs, and the 40 or 50 percent by retailers.

In short, an imported drug is usually sold at thrice its initial price in this country.

According to a Health Ministry instruction in August, "Doctors must prescribe drugs according to the patient's illness and to his or her economic situation. They are not allowed to overuse expensive imports, too costly for poor patients."

The problem, however, is how to find the bad apples among the doctors. Giao says it is virtually impossible to control what a doctor prescribes.

While it is easy to fault a doctor for prescribing the wrong drug, it is far more difficult to blame a physician for prescribing an expensive drug, especially when there are no local substitutes.

"It is only when state control becomes more effective that pharmaceutical companies and doctors will not be able to cooperate to increase the prices of imported drugs," Giao said.

(Inter Press Service)


 
Sep 14, 2002



 

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