Linking prescriptions to income

It’s rampant in China. An antibiotic injection for a cold?

In China, the network of state-run hospitals calls the shots. Because doctors and hospitals rely on prescription drugs to boost their income, it is difficult for insurers to manage costs.

Recently, Xiao Ming, 29 years old, brought her feverish three-year-old son to see the doctor at a small hospital in Jiangsu province that derives most of its revenue from drug sales. Dr. Zhu Bin told her the boy probably had a bad cold and sold her an antibiotic injection for 17 yuan.

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