Transcript Reflection on Problems Concerning Construction of the

Reflection on Problems Concerning
Construction of the Health Impact Fund
Gao Zhiqian
Chinese Academy of Science and
Technology for Development
INNOVA P2, New Delhi, 12-13,May2011
1. Applicable scope of the Health Impact Fund

Scope of illness

Scope of patients

Main functions of HIF
2. The problem of major disease differences
in various countries
Even in developing countries, the major
diseases in different countries vary greatly,
and there is great difference in terms of
demand for drugs in various countries.
2. The problem of major disease differences
in various countries
Half of the population in the world is troubled by
malaria. 300 million people suffer from malaria
each year, among whom over 800 thousand
people die; while in China, only 14 people died
from malaria in 2010. The patients suffering from
various hepatitis and related hepatopaths exceed
200 million, so hepatopathy is the most
widespread chronic disease with the greatest
harm in China.
2. The problem of major disease differences
in various countries
Tabel1
infectious disease in China (2010)
Case
death
3185932
14289
AIDS
15982
7743
phthisis
991350
3000
2048
2014
1317982
884
7123
147
infectious disease
hydrophobia
hepatitis
H1N1
2. The problem of major disease differences
in various countries

The direct medical expenses caused by hepatopathy
reach several hundred billion RMB. At present, 12 million
people suffer from Alzheimer’s disease worldwide, while
about 6 million patients of Alzheimer’s disease,
accounting for 50% of the world’s total. In 2025, the
amount of Alzheimer’s disease patients will reach 15
million.

Therefore, drugs registered with the Health Impact Fund
probably may only benefit some countries.
3. The fund payment ability of developing
countries
According to the basic requirements of the World
Health Organization, the proportion of total
health expenditure in GDP shall be no lower
than 5%. According to the “2010 Statistical
Bulletin of Health Development in China” issued
by the Ministry of Health in China, the total
health expenditure in 2010 is estimated to be
RMB 1960.3 billion, accounting for 4.9% of GDP.
3. The fund payment ability of developing
countries
Tabel 1: Growth of Total Health Expendituer in China
6
20000
5.5
15000
5
10000
4.5
5000
0
4
2007
2008
2009
2010
Propotion in GDP(%)
Total health expenditure
(RMB 100 million)
25000
3. The fund payment ability of developing
countries

Government account for 27.5% of the total health budget
in 2009. in rural area, the cost of one person is 562 Yuan
(80 USD)

In 2010，Chinese government enhanced the subsidy for
health insurance to 120 Yuan (18 USD) per person in a
year.

The data can provide useful information for HIF financing.
4. Motivation of pharmaceutical companies to join in HIF
The case of antimalarial drug
In 1999, the Chinese Academy of Military Medical
Sciences successfully developed the first artemisinine
based antimalarial drug in the world, which is jointly
manufactured by two enterprises in China and a foreign
company. Also, the World Health Organization and the
United Nations Children’s Fund cooperate to provide
drugs to related countries in a non-profit-making manner.
4. Motivation of pharmaceutical companies to
join in HIF
What we are concerned about is the motive of
this foreign company, and whether this case can
provide reference to the Health Impact Fund.
Relation between price and profits of innovation drugs
profit
rate
price
profit rate
C
high incom
price
B
middle income
A
low income
D
reclaim cost D
profits
E
E
profits enlarged
4.Motivation of pharmaceutical companies
to join in HIF
Ways to reduce the drug price

Government allowance

Market mechanism

Beneficence funds

Commonweals activities of pharmaceutical companies

Government’s support to drugs innovation

Other mechanism may be considered in HIF except for
price factor
5.TCMs innovation cooperation between
India and China

Illness pressure of low income people

Plenty of TCMs resource

Paying attention to the development of TCM

Modernization of TCMs
Thank you