Law of the People’s Republic of China on Basic Medical and Health Care and the Promotion of Health

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Law of the People’s Republic of China on Basic Medical and Health Care and the Promotion of Health 

(Adopted at the 15th Meeting of the Standing Committee of the Thirteenth National People’s Congress of the People’s Republic of China on December 28, 2019)

Contents

Chapter I General Provisions

Chapter II Basic Medical and Healthcare Services

Chapter III Medical and Healthcare Institutions

Chapter IV Medical and Healthcare Professionals

Chapter V Guarantee of Medicine Supply

Chapter VI Health Promotion

Chapter VII Guarantee of Funds

Chapter VIII Supervision and Administration

Chapter IX Legal Liabilities

Chapter X Supplementary Provisions

Chapter I

General Provisions

Article 1 This Law is formulated in accordance with the Constitution of the People’s Republic of China for the purposes of developing medical and healthcare undertakings, ensuring citizens’ enjoyment of basic medical and healthcare services, improving citizens’ health and promoting the construction of Healthy China.

Article 2 This Law shall be applicable to the activities of medical and healthcare services delivery, health promotion activities, as well as the supervision and administration of such activities.

Article 3 Medical and healthcare undertakings shall be people-centered and serve public health.

Medical and healthcare undertakings shall adhere to the principle of public welfare.

Article 4 The state and society respect and protect citizens’ right to health.

The state implements the ‘Healthy China’ strategy, promotes healthy lifestyle, optimizes health services, improves health guarantees, creates a healthy environment, develops the health industry and enhances citizens’ full-life-cycle health conditions.

The state establishes a health education system, ensures citizens’ access to health education and improves citizens’ health literacy.

Article 5 Citizens shall, in accordance with applicable laws, have the right to receive basic medical and healthcare services from the state and society.

The state establishes a basic medical and healthcare system, establishes and improves a medical and healthcare service system, protects and realizes citizens’ right to basic medical and healthcare services.

Article 6 People’s governments at all levels shall place people’s health at the strategic position of priority development, integrate the idea of health into each and every policy, focus on prevention, improve the health promotion system, organize and implement health promotion programs and activities, carry out national fitness campaigns, establish a health impact assessment system, and incorporate the improvement of citizens’ major health indicators into the assessment of government’s target responsibilities.

The whole society shall care for and support the development of medical and healthcare undertakings.

Article 7 The State Council and local people’s governments at all levels shall lead the medical, healthcare and health promotion work.

The health department under the State Council shall be responsible for coordinating the nationwide medical, healthcare and health promotion work. Other departments under the State Council shall be responsible for the medical, healthcare and health promotion work within their respective scopes of responsibility.

Health departments of governments at the county level and above shall be responsible for the medical, healthcare and health promotion work within their respective administrative areas. Other relevant departments of governments at the county level and above shall be responsible for the work on medical, healthcare and health promotion work within their respective scopes of responsibility.

Article 8 The state reinforces the fundamental scientific research of medicine, encourages the innovation of medical science and technology, supports the development of clinical medicine, stimulates the transformation and application of the achievements in medical science and technology, advances the integration of medical, healthcare and information technologies, and promotes appropriate medical and healthcare techniques, so as to improve the quality of medical and healthcare services.

The state develops medical education, improves a medical education system compatible with the development of medical and healthcare undertakings, and vigorously trains medical and healthcare professionals.

Article 9 The state vigorously develops the traditional Chinese medicine undertaking, attaches equal importance to both traditional Chinese medicine and Western medicine, combines inheritance and innovation, and maximizes the unique role of traditional Chinese medicine in medical, healthcare and health promotion undertakings.

Article 10 The state makes rational planning and allocation of medical and healthcare resources, focuses on healthcare at the primary level, takes measures to prioritize the development of medical and healthcare institutions below the county level, so as to enhance their capacity for medical and healthcare service delivery.

Article 11 The state increases fiscal investment in medical and healthcare undertakings, and helps old revolutionary base areas, areas with large ethnic minority populations, border areas, and poor areas to develop medical and healthcare undertakings through transfer payment and other methods.

Article 12 The state encourages and supports citizens, legal persons and other organizations to participate in medical and healthcare undertakings through such methods as establishment of institutions, donation and subsidization in accordance with law, so as to satisfy citizens’ diverse, differentiated and personalized health needs.

Citizens, legal persons and other organizations who donate properties to medical and healthcare undertakings shall enjoy preferential tax treatment in accordance with law.

Article 13 Organizations and individuals making outstanding contributions to medical and healthcare undertakings shall be commended and rewarded in accordance with provisions promulgated by the state.

Article 14 The state encourages and supports international exchange and cooperation in the field of medical and healthcare service and health promotion.

International exchange and cooperation activities in the field of medical and healthcare service and health promotion shall be carried out in a way that complies with laws and administrative regulations, and upholds state sovereignty, national security and public interests.

Chapter II

Basic Medical and Healthcare Services

Article 15 Basic medical and healthcare services refer to such services as disease prevention, diagnosis, treatment, nursing and rehabilitation that are essential to maintaining human health, adapted to the level of economic and social development, equitably accessible by all citizens, and provided through the application of appropriate medicines, techniques and equipment.

Basic medical and healthcare services include basic public health services and basic medical services. Basic public health services are provided by the state free of charge.

Article 16 The state adopts measures to ensure citizens’ access to safe and effective basic public health services, controls health risk factors, and improves the level of disease prevention and control.

National basic public health service programs shall be determined by the health department under the State Council in conjunction with the department of finance and the department of traditional Chinese medicine under the State Council.

People’s governments of provinces, autonomous regions and municipalities directly under the Central Government may, on the basis of national basic public health service programs, determine supplementary basic public health service programs within their respective administrative regions, and report such programs to the health department under the State Council for recordation.

Article 17 The State Council and people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may incorporate services for key regions, key diseases and targeted groups into basic public health service programs and organize the implementation thereof.

People’s governments at the county level and above shall carry out specific prevention and control programs in light of major diseases and major health risk factors within their respective administrative regions.

Article 18 People’s governments at the county level and above shall provide basic public health services through the establishment of professional public health institutions, primary-level healthcare institutions and hospitals, or through the purchase of services from other medical and healthcare institutions.

Article 19 The state establishes and improves a health emergency response system, develops and refines emergency preparedness and response plans, organizes and carries out such health emergency response work as medical treatment, hygiene investigation and disposal, and psychological assistance in an emergency, and effectively controls and eliminates hazards.

Article 20 The state establishes an infectious diseases prevention and control system, develops plans for the prevention and control of infectious diseases and organizes the implementation thereof, strengthens infectious diseases surveillance and warning systems, and adheres to the principles of prevention first, combination of prevention and treatment, joint prevention and control, mobilization of the public in prevention and control, prevention and control at the sources, and comprehensive governance, so as to block transmission routes, protect vulnerable populations, and reduce hazards of infectious diseases.

All organizations and individuals shall accept and cooperate with the investigation, inspection, specimen collection, treatment in quarantine, medical observation and other measures taken by medical and healthcare institutions in accordance with law for the prevention, control and elimination of the hazard of infectious diseases.

Article 21 The state implements the vaccination system and strengthens the immunization planning work. Residents shall have the right and the obligation to be vaccinated under the immunization program in accordance with law. The government shall provide residents with vaccines in the immunization program free of charge.

Article 22 The state establishes a chronic non-communicable diseases prevention, control and manage system, conducts monitoring of, investigation into, and comprehensive intervention in chronic non-communicable diseases and pathogenic risk factors thereof, identifies high-risk groups in a timely manner, provides patients and high-risk groups with such services as diagnosis and treatment, early intervention, follow-up visit and management and health education.

Article 23 The state strengthens the protection of occupational health. People’s governments at the county level and above shall develop prevention and control plans for occupational diseases, establish and improve occupational health work mechanism, strengthen supervision over and administration of occupational health work, and enhance the capacity for and level of comprehensive prevention and control of occupational diseases.

Employers shall control hazard factors of occupational diseases, adopt engineering techniques, individual protection, health management and other comprehensive control measures to improve occupational environments and conditions.

Article 24 The state develops maternal and child healthcare undertakings, establishes and improves a maternal and child healthcare service system, provides women and children with healthcare and common diseases prevention and treatment services, and guarantees the health of women and children.

The state takes measures to provide citizens with such services as premarital, pre-pregnancy, pregnancy and post-natal healthcare, promotes reproductive health, and prevents birth defects.

Article 25 The state develops the elderly healthcare undertaking. The State Council and people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall incorporate health management and common disease prevention for the elderly into basic public health service programs.

Article 26 The state develops the disability prevention and rehabilitation undertaking, improves the disability prevention and rehabilitation system and its guarantee system, and takes measures to provide the disabled with basic rehabilitation services.

People’s governments at the county level and above shall prioritize rehabilitative services for children with disabilities, and combine rehabilitation with education.

Article 27 The state establishes and improves a pre-hospital first-aid system to provide timely, standardized and effective first-aid services to patients with acute, severe and life-threatening conditions.

Health departments, red cross societies, and other relevant departments and organizations shall actively organize first-aid training, disseminate first-aid knowledge, encourage medical and healthcare professionals and people who have received first-aid training to participate in first-aid services at public places. Public places shall, in compliance with applicable provisions, be equipped with requisite first-aid equipment and facilities.

First-aid centers (stations) shall not refuse to provide or delay providing first-aid services to patients with acute, severe and life-threatening conditions on grounds of no-payment of fees.

Article 28 The state develops the mental health undertaking, establishes and improves the mental health service system, protects and enhances citizens’ mental health, and prevents and treats mental disorders.

The state takes measures to strengthen the building of the mental health service system and  professional team, promotes effective connection between mental health education, psychological assessment, psychological counseling and psychological treatment services, sets up a public interest psychological assistance hotline, and enhances mental health services for such key groups as minors, the disabled and the elderly.

Article 29 Basic medical services shall mainly be provided by government-run medical and healthcare institutions. The state encourages medical and healthcare institutions run by the private sector to provide basic medical services.

Article 30 The state promotes tiered referral system for basic medical services, directs non-emergency patients to firstly visit primary-level healthcare institutions, implements the accountability system for initial diagnosis and referral review, and gradually establishes a mechanism characterized by initial diagnosis by primary-level healthcare institutions, two-way referral, separated treatment of acute and chronic diseases, and vertical coordination, and dovetailed with the basic medical insurance system.

People’s governments at the county level and above shall, in light of medical and healthcare needs within their respective regions, integrate government-run medical and healthcare resources within the regions, and establish such coordinated and collaborative medical services mechanism as medical consortium in light of local circumstances. Medical and healthcare institutions run by private sector shall be encouraged to participate in this mechanism.

Article 31 The state promotes contract-based care provided by family doctors in primary-level medical and healthcare institutions, establishes family doctor service teams that sign contracts with residents, and provide basic medical and healthcare services in light of residents’ health conditions and medical needs.

Article 32 Citizens shall have the right to informed consent in matters relating to their illness, diagnosis and therapy plan, medical risks, and medical expenses when receiving medical and healthcare services.

Before performing any surgery, special examination or treatment, medical and healthcare professionals shall explain medical risks, alternative therapy plan and other conditions to patients in a timely manner and obtain their consent; if it is not possible or appropriate to explain such matters to a patient, they shall explain them to close relatives of the patient and obtain informed consent thereof, except as otherwise prescribed by law.

Clinical trials on drugs or medical devices and other medical researches shall comply with medical ethics, pass ethics review and obtain informed consent in accordance with law.

Article 33 Citizens shall be treated with respect when they receive medical and healthcare services. Medical and healthcare institutions, and medical and healthcare professionals shall care for patients and treat patients equally, respect patients’ personal dignity, and protect patients’ privacy.

Citizens shall comply with rules on diagnosis and treatment, observe the order of medical and healthcare services, and respect medical and healthcare professionals.

Chapter III

Medical and Healthcare Institutions 

Article 34 The state establishes and improves a medical and healthcare system composed of primary-level medical and healthcare institutions, hospitals, professional public health institutions, among others, and characterized by full coverage of urban and rural areas, complementary functions and continuous coordination.

The state strengthens the construction of county-level hospitals, town and township health centers, village clinics, community health centers (stations) and professional public health institutions, and establishes and improves a rural medical and healthcare service network and an urban community healthcare service network.

Article 35 Primary-level medical and healthcare institutions shall mainly provide such basic medical and healthcare services as disease prevention, healthcare, health education, disease management, creation of residents health records, diagnosis and treatment of common or frequently-occurring diseases, and rehabilitation and nursing of patients suffering from certain diseases, accepting patients referred by hospitals, and referring patients beyond their service capacity to hospitals.

Hospitals shall mainly provide such medical and healthcare services as diagnosis and treatment of diseases, especially severe acute and difficult and complicated diseases, and health education. Moreover, they shall carry out medical education, training of medical and healthcare professionals, and medical scientific researches, and provide guidance to primary-level medical and healthcare institutions.

Specialized public health institutions shall mainly provide such public health services as prevention and control of infectious diseases, chronic non-communicable diseases, occupational diseases and endemic diseases, health education, maternal and child care, mental healthcare, pre-hospital first-aid, blood collection and supply, food safety risk monitoring and evaluation, and birth defects prevention.

Article 36 Medical and healthcare institutions of all types and at all levels shall divide responsibilities and cooperate with each other to provide citizens with such all-round and full-life-cycle medical and healthcare services as disease prevention, healthcare, treatment, nursing, rehabilitation, and palliative care.

People’s government at all levels shall take measures to support medical and healthcare institutions in establishing cooperation mechanisms with nursing homes for the aged, child welfare institutions and community organizations to provide safe and convenient medical and healthcare services for the elderly, orphans and children with disabilities.

Article 37 People’s governments at the county level and above shall develop and implement plans for the development of the medical and healthcare service system, scientifically allocate medical and healthcare resources, establish medical and healthcare institutions, and ensure citizens’ access to basic medical and healthcare services.

When establishing medical and healthcare institutions, governments shall take into consideration such factors as population, economic and social development conditions, medical and healthcare resources, health risk factors, incidence rate and prevalence rate of diseases, and emergency rescue needs within their respective administrative regions.

Article 38 In order to be established, a medical or healthcare institution must meet the following conditions and undergo the examination and approval or recordation formalities in accordance with the relevant provisions of the state:

(1) It has a name, organizational body and site that comply with applicable requirements;

(2) It has funds, facilities, equipment and medical and healthcare professionals compatible with its business;

(3) It has corresponding rules and regulations;

(4) It is able to independently assume civil liabilities;

(5) Other conditions as prescribed by laws and administrative regulations.

Medical institutions shall obtain practicing license in accordance with law. It is prohibited to counterfeit, alter, sell or buy, lease or lend any practicing license.

Medical and healthcare institutions of all types and at all levels shall comply with the standards on specific conditions and components of medical and healthcare institutions developed by the health department under the State Council.

Article 39 The state conducts classified administration of medical and healthcare institutions.

The medical and healthcare system shall adhere to the principle of taking nonprofit medical and healthcare institutions as the main body and for-profit medical and healthcare institutions as supplements. Government-run nonprofit medical and healthcare institutions shall play a dominant role in the basic medical and healthcare undertaking, so as to ensure the equality and accessibility of basic medical and healthcare services.

No medical and healthcare institution established in whole or in part by government funds or donated assets shall be established as for-profit institution.

Medical and healthcare institutions shall not engage in external leasing or contracting of any of their medical departments. Nonprofit medical and healthcare institutions shall not distribute revenues to their sponsors and founders or do so in a disguised form.

Article 40 Government-run medical and healthcare institutions shall adhere to their public welfare nature, incorporate all revenues and expenses into budget management, and rationally set and control their scale in accordance with plans for the medical and healthcare service system.

The state encourages government-run medical and healthcare institutions to establish nonprofit medical and healthcare institutions in collaboration with the private sector.

Government-run medical and healthcare institutions shall neither invest with other organizations to establish any medical or healthcare institution without the qualification of an independent legal person, nor jointly establish for-profit medical or healthcare institutions in collaboration with non-governmental funds.

Article 41 The state takes various measures to encourage and guide the private sector to run medical and healthcare institutions in accordance with law, and supports and regulates their cooperation with the government-run medical and healthcare institutions in such fields as various types of medical services, discipline construction and talent training.

Medical and healthcare institutions run by the private sector shall enjoy the same right as government-run medical and healthcare institutions in terms of contract with basic medical insurance funds, construction of key specialties, scientific research and education, grade review, specific medical technique access, and professional title review of medical and healthcare professionals.

The private sector may choose to establish for-profit or nonprofit medical and healthcare institutions. Nonprofit medical and healthcare institutions run by the private sector shall enjoy the same policies as government-run medical and healthcare institutions in terms of taxation, fiscal subsidy, and the use of land, water, electricity, gas and heat as provided for by applicable provisions, and shall be supervised and regulated in accordance with law.

Article 42 Based on existing medical and healthcare institutions, the state rationally plans and sets up national and regional clinical centers for diagnosing and treating complicated severe diseases, conducting research to overcome major medical difficulties, and cultivating high-level medical and healthcare professionals.

Article 43 Medical and healthcare institutions shall comply with laws, administrative regulations and rules, establish and improve internal quality management and control system, and be responsible for the quality of medical and healthcare services.

Medical and healthcare institutions shall, in accordance with clinical diagnosis and treatment guidelines, clinical technical operation specifications, industry standards, medical ethics and other relevant requirements, rationally conduct examination, prescription, diagnosis and treatment, strengthen the prevention of medical and healthcare safety risks, optimize service process, and continuously improve the quality of medical and healthcare services.

Article 44 The state conducts classified management of clinical application of medical and healthcare techniques, and carries out strict management of medical and healthcare techniques with high technical difficulties, high medical risk, and high demand on the service capacity and competence of medical and healthcare professionals.

The clinical application of medical and healthcare techniques carried out by medical and healthcare institutions shall be compatible with the functions and tasks of such institutions, comply with the principles of scientificity, safety, standardization, effectiveness and economy, and meet ethical requirements.

Article 45 The state establishes a modern hospital management system characterized by clearly defined powers and responsibilities, scientific management, sound governance, efficient operation, and effective supervision.

Hospitals shall develop bylaws, establish a sound legal person governance structure, and strengthen the capacity and operational efficiency of medical and healthcare services.

Article 46 Practicing places of medical and healthcare institutions are public places that provide medical and healthcare services. No organization or individual shall disturb the order in such places.

Article 47 The state improves the medical risk-sharing mechanism, encourages medical institutions to participate in medical liability insurance or establish medical risk funds, and encourages patients to participate in medical accident insurance.

Article 48 The state encourages medical and healthcare institutions to continuously improve techniques, equipment and services of prevention, healthcare, diagnosis, treatment, nursing and rehabilitation, and supports the development of medical and healthcare technologies that suit the primary level and remote areas.

Article 49 The state promotes health informatization for the whole people, advances the application and development of health and medical big data and artificial intelligence, accelerates medical and healthcare information infrastructure construction, develops technical standards on the collection, storage, analysis and application of medical and health data, and promotes the popularization and sharing of high-quality medical and healthcare resources through information technology.

People’s governments at the county level and above and their relevant departments shall take measures to advance the application of information technology in the medical and healthcare field and in medical education, and support and explore the development of new modes and new business patterns of medical and healthcare services.

The state takes measures to encourage medical and healthcare institutions to establish and improve medical and healthcare information exchange and information security systems, provide remote medical services through the application of information technology, and build an integrated online and offline medical services mode.

Article 50 In the occurrence of natural disasters, accidental disasters, public health incidents, social security incidents and other emergencies that severely threaten people’s life and health, medical and healthcare institutions and medical and healthcare professionals shall obey the arrangements by government departments, participate in health emergency responses and medical treatment. Those who get sick, become disabled or die as a result of such participation shall be given such treatments as compensation for occupational injury, pension for the disabled or for the family of the deceased or the honorary title as martyrs in accordance with relevant provisions.

Chapter IV

Medical and Healthcare Professionals

Article 51 Medical and healthcare professionals shall carry forward the lofty professional spirit of respecting life, healing the wounded and rescuing the dying, being dedicated, and maintaining boundless love, comply with industry standards, adhere to medical ethics, and strive to improve their professional level and quality of services.

Medical and healthcare industrial associations, medical and healthcare institutions and medical colleges and universities shall strengthen the education of medical and healthcare professionals on medical ethics.

Article 52 The state develops training programs for medical and healthcare professionals, establishes training mechanisms that reflect characteristics of the health sector and needs of the society to achieve the supply and demand balance of medical and healthcare professionals, improves the medical education system consisting of college education, post-graduation education and continuous education, establishes and improves standardized training programs for resident and specialist doctors, and builds up medical and healthcare professional teams with appropriate size, reasonable structure, and rational distribution.

The state strengthens the training and utilization of general practitioners. General practitioners shall mainly provide such services as diagnosis, treatment, referral, prevention, healthcare and rehabilitation of common diseases and frequently-occurring diseases, chronic diseases management, and health management.

Article 53 The state implements a practice registration system for doctors, nurses and other medical and healthcare professionals in accordance with law. Medical and healthcare professionals shall obtain corresponding occupational qualifications in accordance with law.

Article 54 Medical and healthcare professionals shall follow the law of medical science, comply with technical specifications on clinical diagnosis and treatment, rules for operation, and medical ethics, use appropriate techniques and drugs, provide rational diagnosis and treatment, conduct treatment in light of sickness, and shall not give overtreatment to patients.

Health professionals shall not illegally ask for or accept money or property from their patients or seek other illicit interests by taking advantage of their positions.

Article 55 The state establishes and improves medical and healthcare personnel, remuneration and reward systems that are compatible with the characteristics of the medical and healthcare sector and embody the occupational characteristics and the value of technical work of medical and healthcare professionals.

Medical and healthcare professionals engaged in the prevention and control of infectious diseases, radioactive medicine, mental health work or working in other special posts shall be given appropriate allowances in accordance with the provisions promulgated by the state. Allowance standards shall be regularly adjusted.

Article 56 The state establishes a mechanism for medical and healthcare professionals to deliver medical and healthcare services at the primary level and in remote areas or areas with harsh living conditions on a regular basis.

The state takes such measures as free medical students training programs, directional support, and re-employment after retirement to strengthen medical and healthcare professional teams at the primary level and in remote areas or areas with harsh living conditions.

In order to acquire an associate senior professional title, a practicing physician shall have an accumulated experience over one year in providing medical and healthcare services at a medical and healthcare institution at or below the county level or in a recipient medical and healthcare institution of a directional support program.

Medical and healthcare professionals working at the primary level and in remote areas or areas with harsh living conditions shall be entitled to preferential treatments in remunerations and allowances, professional title evaluation, career development, education and training, and honors and rewards, among others.

The state strengthens medical and healthcare professional teams in rural areas, establishes a career development mechanism characterized by vertical linkage between villages, townships and counties, and improves the multi-channel service income subsidy mechanism and pension policies for medical and healthcare professionals working in rural areas.

Article 57 The whole society shall care for and respect medical and healthcare professionals, maintain a sound and safe order of medical and healthcare services, and jointly form a harmonious doctor-patient relationship.

The personal safety and dignity of medical and healthcare professionals shall not be violated, and their lawful rights and interests shall be protected by law. No organization or individual may threaten or endanger the personal safety of medical and healthcare professionals, or violate their personal dignity.

The state takes measures to safeguard the practicing environment of medical and healthcare professionals.

Chapter V

Guarantee of Medicine Supply

Article 58 The state improves the medicine supply guarantee system and establishes a coordination mechanism to ensure the safety, efficacy and accessibility of medicines.

Article 59 The state implements an essential medicine system, and selects appropriate number of essential medicines to meet basic needs of disease prevention and control.

The state issues national essential medicine list, and dynamically adjusts the list in light of such circumstances as clinical drug application practice, changes in drug standards, and launch of new drugs.

Essential medicines shall, as provided by relevant provisions, be preferentially incorporated in the medicine list covered by basic medical insurance.

The state improves the capacity for the supply of essential medicines, strengthens supervision over the quality of essential medicines, and ensures equitable access to and rational use of essential medicines.

Article 60 The state establishes and improves a clinical needs-oriented drug review and approval system, and supports research and production of drugs in urgent clinical needs, pediatric drugs, and drugs for prevention and control of rare diseases and major diseases, so as to meet the needs of disease prevention and control.

Article 61 The state establishes and improves a whole-process tracing system for the research, development, manufacture, distribution and use of drugs, so as to strengthen drug management and ensure drug quality.

Article 62 The state establishes and improves a drug price monitoring system, conducts investigation into cost prices, strengthens drug price supervision and inspection, investigates and punishes price monopoly, price fraud, unfair competition and other illegal acts, and maintains the order of drug price.

The state strengthens categorized management and guidance of drug procurement. A bidder participating in drug procurement bidding shall not bid at a price lower than cost or bid by fraud, collusion, abuse of its market dominant position, or other unlawful means.

Article 63 The state establishes both national and local medical product reserve systems for guaranteeing emergency supply in major disasters, epidemics and other emergencies.

Article 64 The state establishes and improves a drug supply and demand monitoring system, collects, summarizes and analyzes information about drug supply and demand in a timely manner, and regularly discloses information about the production, distribution and use of drugs.

Article 65 The state strengthens the management of medical devices, improves standards and specifications on medical devices, and raises the safety and efficacy level of medical devices.

The health department under the State Council and health departments of people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, in light of the advancement, appropriateness and accessibility of techniques, develop allocation plans for large-scale medical equipment, and promote rational allocation and sufficient sharing of medical resources within their respective administrative regions.

Article 66 The state strengthens the protection and development of traditional Chinese medicine, fully demonstrates the characteristics and advantages of traditional Chinese medicine, and maximizes the role of traditional Chinese medicine in prevention, healthcare, medical treatment and rehabilitation.

Chapter VI

Heath Promotion 

Article 67 People’s governments at all levels shall strengthen health education and training of health professional, establish a health knowledge and skill core information release system, popularize health science knowledge, and provide the public with scientific and accurate health information.

Medical and healthcare, education, sports and publicity institutions, grassroots self-governing mass organizations and social organizations shall carry out publicity and popularization of health knowledge. When providing medical and healthcare services, medical and healthcare professionals shall carry out health education for patients. New media shall carry out public interest health knowledge publicity. The publicity of health knowledge shall be scientific and accurate.

Article 68 The state incorporates health education into the national education system. Schools shall carry out health education in various forms, popularize health knowledge, scientific fitness knowledge, and first-aid knowledge and skills, improve students’ awareness of active disease prevention, help students to cultivate sound health habits and healthy behaviors, and reduce and improve students’ such adverse health conditions as myopia and obesity.

Schools shall provide physical and health courses, and organize students to carry out such activities as radio gymnastic exercises, eye exercises, and physical exercises in accordance with relevant provisions.

Schools shall appoint school doctors, and establish and improve medical rooms and health rooms in accordance with relevant provisions.

Education departments of people’s governments at the county level and above shall incorporate students’ level of physical fitness into school assessment system in accordance with relevant provisions.

Article 69 Citizens undertake the primary responsibility for their own health. They shall establish and practice a health management concept of being responsible for their own health, actively acquire health knowledge, improve health literacy, and strengthen health management. Family members shall be encouraged to care for each other and form a healthy lifestyle that suits themselves and family characteristics.

Citizens shall respect the health rights and interests of others and shall not harm others’ health or public interests.

Article 70 The state organizes investigation into and statistical survey of residents’ health conditions, conducts monitoring of the people’s physique, evaluates health performance, and, on the basis of evaluation results, formulates and improves laws, administrative regulations, policies and plans on health.

Article 71 The state establishes monitoring, investigation and risk assessment system for diseases and health risk factors. People’s governments at the county level and above and the departments concerned shall focus on main problems that affect health, organize and conduct research on health risk factors, and develop comprehensive prevention and control measures.

The state strengthens the prevention and treatment of environmental problems that affect health, organizes research on the impact of environmental quality on health, and takes measures to prevent and control diseases related to environmental problems.

Article 72 The state vigorously carries out patriotic sanitation campaign, encourages and supports such mass sanitation and health activities as patriotic sanitary month, relies on and mobilizes the public to contain and eliminate health risk factors, improve environmental sanitation conditions, and build healthy cities, villages, towns and communities.

Article 73 The state establishes a scientific and strict supervision and administration system for the safety of food and drinking water, and improves the safety level.

Article 74 The state establishes a nutrition monitoring system, implements nutrition intervention plans for underdeveloped areas and key groups of people, carries out nutrition improvement projects for minors and the elderly, advocates healthy dietary habits, and reduces the risk of diseases caused by unhealthy diet.

Article 75 The state develops the national fitness undertaking, improves the national fitness public service system covering both urban and rural areas, strengthens the construction of public sports facilities, organizes, implements and supports national fitness activities, improves national fitness guidance services, and popularizes scientific fitness knowledge and methods.

The state encourages entities to open their sports facilities to the public.

Article 76 The state develops and implements working plans for the health of minors, women, the elderly, the disabled and other groups, and improves health services for key groups.

The state promotes long-term nursing care guarantee work and encourages the development of long-term nursing insurance.

Article 77 The state improves sanitary management system for public places. Health departments of people’s governments at the county level and above shall strengthen sanitary inspection of public places. Information on sanitary inspection of public places shall be disclosed to the public in accordance with law.

Business entities at public places shall establish, improve and strictly implement a sanitary management system, and ensure that business operation activities continuously satisfy the state’s sanitary requirements for public places.

Article 78 The state takes measures to reduce the harm of smoking to public health.

Smoking at public places shall be controlled, and supervision and law enforcement thereof shall be strengthened.

Warnings indicating harms of smoking shall be printed on the packages of tobacco products.

Sale of cigarettes and alcohol to minors shall be prohibited.

Article 79 Employers shall create environment and conditions favorable to employees’ health, strictly implement provisions on occupational safety and health, actively organize employees to carry out fitness activities, so as to protect employees’ health.

The state encourages employers to provide guidance for employees’ health.

The state encourages employers to carry out regular health examinations for employees. If laws and administrative regulations contain provisions on health examinations, such provisions shall apply.

Chapter VII

Guarantee of Funds 

Article 80 People’s governments at all levels shall effectively perform their duties of developing medical and healthcare undertakings, establish a medical and healthcare investment mechanism compatible with economic and social development, financial conditions and health indicators, and incorporate medical, healthcare and health promotion expenditures into government budget at corresponding levels, mainly for guaranteeing basic medical services, public health services, basic medical security and the construction, operation and development of government-run medical and healthcare institutions in accordance with relevant provisions.

Article 81 People’s governments at the county level and above shall strengthen the supervision over and administration of funds by such means as budget, audit, supervision over law enforcement, and public supervision.

Article 82 Basic medical service expenses shall mainly be covered by basic medical insurance fund and out-of-pocket payment. The state raises basic medical insurance fund through multiple channels in accordance with law and gradually improves sustainable financing and guarantee level adjustment mechanisms for basic medical insurance.

Citizens have the rights and obligations to participate in basic medical insurance schemes in accordance with law. Employers and employees shall pay premiums for employees’ basic medical insurance in accordance with provisions promulgated by the state. Urban and rural residents shall pay premiums for urban and rural residents’ basic medical insurance in accordance with relevant provisions.

Article 83 The state establishes a multi-layered medical security system with basic medical insurance as the main body and commercial health insurance, medical assistance, employees’ mutual aids for medical expenses, and medical charity as supplements.

The state encourages the development of commercial health insurance to satisfy diverse health security needs of the public.

The state improves medical assistance system and ensures that eligible people with financial difficulties receive basic medical services.

Article 84 The state establishes and improves the negotiation mechanism between basic medical insurance agencies and designated medical and healthcare institutions, scientifically and rationally determines payment standards and payment forms for basic medical insurance fund, guides medical and healthcare institutions to rationally conduct diagnosis and treatment, promotes the orderly flow of patients, and enhances utilization efficiency of basic medical insurance fund.

Article 85 The payment scope of basic medical insurance fund shall be determined by medical security department under the State Council, which shall take into consideration the opinions of the health department, the department of traditional Chinese medicine, the department of drug administration and the department of finance under the State Council in making the determination.

People’s governments of provinces, autonomous regions, and municipalities directly under the Central Government may, in accordance with relevant provisions promulgated by the state, supplement specific items and standards of payment of basic medical insurance fund within their respective administrative regions, and report such supplementations to the medical security department under the State Council for recordation.

The department of medical security under the State Council shall conduct evidence-based medical and economic evaluation of drug list, diagnosis and treatment items and standards for medical service facilities covered by basic medical insurance fund, and listen to the opinions of the health department, the department of traditional Chinese medicine, the department of drug administration, the department of finance and other relevant departments under the State Council in the evaluation. The result of the evaluation shall be regarded as the basis for adjusting payment scope of basic medical insurance fund.

Chapter VIII

Supervision and Administration   

Article 86 The state establishes and improves a comprehensive medical and healthcare supervision and management system that combines institutional autonomy, industrial self-regulation, government supervision and administration, and public supervision.

Health departments of the people’s governments at the county level and above shall conduct localized and industry-wide supervision over and administration of the medical and healthcare industry.

Article 87 Medical security departments of the people’s governments at the county level and above shall improve the capacity for and level of medical security supervision and administration, strengthen supervision over and administration of medical service behaviors and medical expenses covered by basic medical insurance fund, and ensure the rational use, safety and controllability of basic medical insurance fund.

Article 88 People’s governments at the county level and above shall organize health, medical security, drug administration, development and reform, finance and other relevant departments to establish a mechanism for communication and consultation among them, strengthen institutional collaboration and work coordination, and improve the efficiency and security level of medical and healthcare resources.

Article 89 People’s governments at the county level and above shall report their basic medical and healthcare work and health promotion work to the people’s congresses at the corresponding levels or their standing committees on a regular basis, and accept their supervision in accordance with law.

Article 90 When departments of the people’s governments at the county level and above fail to perform their duties relating to the medical, healthcare or health promotion work, the people’s governments at the corresponding levels or the relevant departments at higher levels shall make inquiries with the persons in charge of them.

When the local people’s governments fail to perform their duties relating to the medical, healthcare or health promotion work, the people’s governments at the higher level shall make inquiries with the persons in charge of them.

Local people’s governments and the relevant departments being inquired shall take immediate measures to make rectification.

The inquiries and rectifications shall be taken into consideration in the assessment and evaluation of the work of the relevant departments and local people’s governments.

Article 91 Health departments of people’s governments at the county level and above shall establish performance evaluation system for medical and healthcare institutions, and organize the assessment of the quality of services, the level of medical techniques, the utilization of medicines and medical equipment of medical and healthcare institutions. The assessment shall be participated by industry associations and the public. The results of the assessment shall be disclosed to the public in an appropriate manner and used as an important basis for the assessment of medical and healthcare institutions and for health supervision and administration.

Article 92 The state protects and ensures the security of citizens’ personal health information. No organization or individual shall illegally collect, use, process, or transmit or illegally purchase, sell, provide or disclose citizens’ personal health information.

Article 93 Health departments and health security departments of the people’s governments at the county level and above shall establish a credit record system for medical and healthcare institutions and professionals, incorporate the records into the national credit information sharing platform, and take joint disciplinary actions against violations in accordance with relevant provisions promulgated by the state.

Article 94 Health departments of the people’s governments at the county level and above and their entrusted health supervision institutions shall conduct medical and healthcare administrative law enforcement work within their respective administrative regions in accordance with law.

Article 95 Health departments of people’s governments at the county level and above shall actively cultivate medical and healthcare industry associations, maximize their role in medical, healthcare and health promotion work, support their participation in the development of industry management practices and technical standards, and in medical and healthcare evaluation, assessment and review work.

Article 96 The state establishes a medical dispute prevention and settlement mechanism to appropriately handle medical disputes and maintain medical order.

Article 97 The state encourages citizens, legal persons and other organizations to conduct public supervision over the medical, healthcare and health promotion work.

Any organization and individual shall have the right to make complaints and tip-offs against any violation of this Law to health departments and other relevant departments of the people’s governments at the county level and above.

Chapter IX

Legal Liabilities 

Article 98 Where people’s governments at any level, and health departments and other relevant departments of the people’s governments at the county level and above abuse powers, neglect duties, practice favoritism or make falsification in violation of this law, the persons in charge of these departments and other persons directly responsible for such violations shall be subject to disciplinary actions in accordance with law.

Article 99 Any entity that, in violation of this Law, delivers medical services without obtaining the practicing license for medical institutions shall be ordered by health departments of the people’s government at the county level and above to cease its practicing activities, subject to confiscation of its illegal gains, medicines and medical devices and to a fine not less than 5 times but not more than 20 times of its illegal gains; in the case that illegal gains are less than RMB 10,000 yuan, the calculation of the fine shall be made on the basis of illegal gains of 10,000 yuan.

Any entity that counterfeits, alters, buys, sells, leases or lends a practicing license for a medical institution in violation of this Law shall be ordered by health departments of the people’s governments at the county level and above to make corrections, subject to confiscation of its illegal gains and to a fine not less than 5 times but not more than 15 times of its illegal gains; in the case that illegal gains are less than RMB 10,000 yuan, the calculation of the fine shall be made on the basis of illegal gains of RMB 10,000 yuan; if the circumstance of the case is serious, the entity shall be subject to the revocation of the practicing license for a medical institution.

Article 100 Any entity that, in violation of this Law, commits one of the following acts shall be ordered by health departments of the people’s governments at the county level and above to make corrections, and subject to confiscation of its illegal gains and to a fine not less than 2 times but not more than 10 times of its illegal gains; in the case that illegal gains are less than RMB 10,000 yuan, the calculation of the fine shall be made on the basis of illegal gains of RMB 10,000 yuan; the persons in charge of the entity and other persons directly responsible for such acts shall be subject to disciplinary actions in accordance with law:

(1) As a government-run medical and healthcare institution, investing with other organizations to establish a medical and healthcare institution without the qualification of an independent legal person;

(2) As a medical and healthcare institution, engaging in external leasing or contracting of a medical department;

(3) As a nonprofit medical and healthcare institution, distributing revenues to its sponsors and founders or doing so in a disguised form.

Article 101 Any medical and healthcare institution that, in violation of this Law, has defective medical information security system and security measures that lead to the leaking of medical information, or defective medical quality management system, medical technique management system and medical safety measures shall be ordered by health departments of the people’s governments at the county level and above to make corrections, and subject to a fine not less than RMB 10,000 yuan but not more than RMB 50,000 yuan; if the circumstances are serious, it may be ordered to cease practicing activities, and the persons in charge of the institution and other persons directly responsible for the violations may be investigated for legal responsibilities in accordance with law.

Article 102 Any medical and healthcare professional who, in violation of this Law, commits one of the following acts shall be given administrative penalties by health departments of the people’s governments at the county level and above in accordance with laws and administrative regulations and rules on the management of licensed doctors and nurses and the prevention and settlement of medical disputes:

(1) Illegally asking for or accepting money or property or seeking other illicit interests by taking advantage of his or her position;

(2) Leaking citizens’ personal health information;

(3) Failing to fulfill the obligation of notification as provided for by relevant provisions or violating medical ethics during the processes of conducting medical research or delivering medical and healthcare services.

If a person prescribed in the preceding paragraph is the personnel of a medical or healthcare institution founded by the government, he or she shall be subject to disciplinary actions in accordance with law.

Article 103 A bidder participating in a bid for drug procurement that, in violation of this Law, bids by offering a price lower than cost, or by fraud, collusion, abuse of market dominant position or other unlawful means shall be ordered by health security departments of the people’s governments at the county level and above to make corrections, and subject to confiscation of its illegal gains; if the bid is won, the winning bid shall be invalid, and a fine not less than 0.5% but not more than 1% of the value of the bidding project shall be imposed; the legal representatives, the principal persons in charge, the executives directly in charge and other responsible persons shall be subject to a fine not less than 5% but not more than 10% of the fine imposed on the entity; if the circumstances of the case are serious, the bidder shall be disqualified from participation in bidding for drug procurement for a period of two to five years, and the disqualification shall be announced to the public.

Article 104 Whoever, in violation of this Law, obtains basic medical insurance benefits by fraud, counterfeiting certification materials or other unlawful means, and any basic medical insurance agency or medical institutions, drug business entity, or other entity that, in violation of this Law, obtains basic medical insurance fund payments by fraud, counterfeiting certification materials or other unlawful means shall be subject to administrative penalties imposed by health security departments of the people’s governments at the county level and above in accordance with laws and administrative regulations on social insurance.

Article 105 Whoever, in violation of this Law, disturbs the order of the practicing place of any medical and healthcare institution, threatens and endanger medical and healthcare professionals’ personal safety, infringes upon medical and healthcare professionals’ personal dignity, illegally collects, uses, processes, transmits, trades in, provides or discloses citizens’ personal health information, if such acts constitutes a violation of public security administration, shall be subject to public security administration penalties in accordance with law.

Article 106 Anyone whose acts of violation of this Law constitutes a crime shall subject to criminal liability in accordance with law; those whose acts cause personal and property losses shall be subject to civil liability in accordance with law.

Chapter X

Supplementary Provisions 

Article 107 The followings are the definitions of some of the terms used in this Law:

(1) Major health indicators refer to average life expectancy, maternal mortality rate, infant mortality rate, mortality rate of children under the age of five, etc.

(2) Medical and healthcare institutions refer to primary-level medical and healthcare institutions, hospitals, professional public health institutions, etc.

(3) Primary-level medical and healthcare institutions refer to town and township health centers, community health centers (stations) and village medical rooms, outpatients, clinics, etc.

(4) Professional public health institutions refer to disease prevention and control centers, specialized diseases prevention and control institutions, health education institutions, first-aid centers (stations), blood stations, etc.

(5) Medical and healthcare professionals refer to licensed doctors, assistant licensed doctors, registered nurses, pharmacists, laboratory technicians, imaging technicians, village doctors and other professionals engaging in medical and healthcare work.

(6) Essential medicines are those that satisfy basic medical needs of disease prevention and control, are adapted to the current basic national conditions and security capacities, and intended to be equitably available in appropriate dosage forms, at an appropriate price, and in adequate supply.

Article 108 A province, autonomous region, municipality, or city with districts and autonomous prefecture may, in light of its actual situation, formulate detailed measures for the development of local medical and healthcare undertakings.

Article 109 The State Council and Central Military Commission shall, in accordance with this Law, develop measures for the administration of medical and healthcare services and health promotion work of the People’s Liberation Army and People’s Armed Police Force.

Article 110 This Law shall come into force as of June 1, 2020.

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