A stone stirred up a thousand waves. On May 3, a source from foreign media alleged that Siemens was investigated by the Chinese industry and commerce department for commercial bribery. But then, this rumor was denied by the State Administration for Industry and Commerce and Siemens. However, the seemingly calm Siemens Healthcare's performance in China is being hit hard. The first quarter earnings report showed that the number of Siemens medical orders fell by more than 50%. So what happened to the medical giant Siemens?
Was it black by competitors?
According to the Beijing News, on May 3, Reuters quoted sources as saying that China’s State Administration for Industry and Commerce last year launched an investigation into Siemens to understand whether its medical department and dealers bribed hospitals and promoted the high price of some medical equipment . One-off products. “The State Administration for Industry and Commerce of China accused Siemens and its dealers of violating competition regulations and redeeming agreements through donated equipment, allowing hospitals to exclusively purchase the chemical reagents needed to use Siemens medical equipmentâ€.
The Reuters report quoted sources as saying that the State Administration for Industry and Commerce accused Siemens and its dealers of commercial bribery under Article 8 of the Anti-Unfair Competition Law. In addition, the survey for Siemens involved up to 1,000 hospitals and may further investigate other medical device manufacturers.
On the evening of May 4, a spokesperson for the State Administration for Industry and Commerce said that the State Administration for Industry and Commerce did not conduct an investigation into the commercial bribery of Siemens, nor did it accept interviews from relevant media. At the same time, Siemens responded externally. “A branch of the Shanghai Administration for Industry and Commerce is understanding the market and business model of the diagnostics business of Siemens Medical Laboratory. This model is widely used in the global industry. This work does not involve any work. The issue of corruption has nothing to do with any personal interests."
In fact, "After this incident came out, I knew that someone was doing something at a glance." Yesterday afternoon, the medical industry consulting expert Shi Lichen said, "The rumors of Siemens' allegations focused on its business model (ie through donations) It’s funny to exchange equipment for hospital use of medical reagents, because this business model is used all over the world, including domestic companies."
Shi Lichen said that the rumored bribery has involved thousands of hospitals, and the authenticity of the rumors has been greatly reduced. "Thousands of hospitals are involved in bribery. If it is true, it is a big case. It is impossible to pass a foreign media until now. Reports without sources are open.†He said that based on his own understanding of the industry, this “Siemens bribery†is likely to be a planned public opinion event. “The biggest possibility is from competitors in the same industry at home or abroad, and it may also come from dealers who are not very happy.â€
It is worth noting that an industry insider admits that Siemens medical equipment sales are different from GlaxoSmithKline, "GlaxoSmithKline wants to deal directly with the hospital, and Siemens is targeting dealers. How do dealers talk to hospitals, with Siemens? Nothing." "So Siemens is circumventing compliance in terms of compliance and it is more difficult to detect problems."
According to industry insiders, most hospitals have received medical device donations, and many health administrative departments and charities are actively promoting medical device donations. “Because the cost is very low, medical device companies have been the most popular marketing method in the industry through the 'donation exchange agreement' promotion. The use of donated medical devices, the corresponding consumables must be purchased from donors, even far above the market price. The price is in the purchase."
The above-mentioned insiders analyzed that "the purchase of medical equipment is the money of local health systems and hospitals. Enterprises are willing to donate for free. Of course, they are welcome. The money for consumables is shared among the medical expenses. It is the patient who saves money, so it does not exist. Cost pressure, now said that the expensive phenomenon of inspections, the phenomenon of large inspections, is the case, the enterprise has found the best balance of interests."
However, Shi Lichen said that when the hospital purchases large medical equipment, the three links are more prone to bribery. "First, procurement, because large-scale equipment, especially imported equipment, is directly returned to millions of dollars, such as a quote of 8 million yuan imported equipment, direct rebate may reach 4 million yuan; second, in terms of consumables, after hospital procurement, the relevant responsible People can get a rebate; third, in terms of consumable maintenance, many devices can be used for many years, but they need maintenance, which may also result in bribes."
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