Done Right, China’s Healthcare Reforms Could Boost the Economy and More

The Sanming Model Aimed to Remove the Cancers in the System. It Implemented Centralised Procurement, Set Bulk Purchases of Drugs at Fixed Prices, Introduced Pay Ceilings for Doctors and Linked the Salaries of Hospital Management with How Much They Cut Costs.

China’s Patients and Medical Staff Pay Price When Healthcare Is Corrupt

But Others Say the Campaign Has Not Addressed the Crux of the Problem – That Public Hospitals Do Not Receive Sufficient Funding from the Government, Thereby Forcing Them to Turn to Profit-Driven Behaviours. Experts Say the Crackdown Shifted the Focus Away from the Government’s Responsibility.

Will China’s Healthcare Crackdown Be the Magic Pill for the Medical System’s Woes?

By Robert Thorne

• Oct 8, 2026 • 9 min read

Will China’s Healthcare Crackdown Be the Magic Pill for the Medical System’s Woes?

Direct Answer • Key Takeaway

Rent-Seeking Became Rampant, as Pharmaceutical Sales Teams Offered Generous Kickbacks to Doctors and Hospital Administrators, Who in Turn Spent Lavishly on Expensive Drugs and Equipment. Bribes – Often in Millions of Yuan – Were Disguised as Academic Conference Sponsorship or Lecture Fees, as Well as Extravagant Junkets.

Robert Thorne

Automotive & Future Transportation Editor

Robert Thorne covers electric vehicle innovations, autonomous driving systems, global mobility trends, and automotive engineering developments.

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