China hospitals may need official nod for major medical equipment

Lab work

China wants to give a thumbs-up or -down on the installation of major medical equipment in hospitals and related institutions and clinics, according to a draft rule from the State Council.

CRI Online said the proposed rule is aimed at halting overuse of the equipment to boost earnings at clinics and hospitals. The draft is open for comment until June 4.

Though the types of equipment were not specified in the report, high-end imaging equipment has received constant scrutiny as domestic firms in the space look to compete with firms like General Electric ($GE) and Siemens ($SI).

According to the news site, the draft rule would have any buyers of major equipment first get approval from provincial health authorities.

Then, if the equipment is approved and installed, its use would be evaluated and regulated by the same authorities--with any breaches linked to improper use leading to possible suspensions in operations and fines.

- here's the story from CRI Online