The Health Ministry sets prices for over 1,000 medical facilities under the Ministries of National Defense and Public Security. This has created administrative complexities and contradicts decentralization principles, said the Health Minister.
During a National Assembly group discussion on amendments to the Pricing Law held on the afternoon of November 3, Minister of Health Dao Hong Lan emphasized that healthcare service prices directly affect citizens’ welfare and the effectiveness of medical care.
She stated that the current law revision must ensure consistency and synchronization between the Pricing Law and the Law on Medical Examination and Treatment, allowing smoother implementation at healthcare facilities.
Minister Dao Hong Lan speaks at the National Assembly’s group discussion.
Minister Lan proposed amending Item 18 of Appendix 2 in the Pricing Law so that the Ministry of Health would coordinate with the Ministry of Finance to establish pricing methods for medical services. This suggestion aligns with Clause 4, Article 110 of the Law on Medical Examination and Treatment, which stipulates that the Ministries of Health, National Defense, and Public Security can independently determine or decentralize pricing for their respective healthcare institutions.
Lan noted, “Currently, the Ministry of Health is responsible for setting prices for both the Ministry of National Defense and the Ministry of Public Security. This process is cumbersome and time-consuming due to bureaucratic procedures.”
According to her, more than 1,000 healthcare facilities fall under the two ministries, ranging from central hospitals to military-civilian health stations. Assigning all pricing responsibilities to the Ministry of Health complicates governance and undermines decentralization.
“We’ve consulted with the Ministries of National Defense and Public Security, and both agreed in principle. Hospital room rates are already covered in existing regulations, so it is logical to delegate full pricing authority for examination and treatment services to these ministries for their own units. The Ministry of Health will manage pricing for its own facilities. Meanwhile, provincial People’s Committees will handle pricing for local and other institutions not under the three ministries,” she proposed.
Lan also called for amendments to the Law on Medical Examination and Treatment alongside the Pricing Law to avoid overlaps and ensure consistency.
“These two matters are directly tied to the healthcare sector. We sincerely urge the inclusion of these changes in this round of revisions to the Pricing Law to establish a unified principle, facilitating practical implementation, especially for healthcare pricing,” she stressed.
The need for clear decentralization in healthcare pricing
Delegate Tran Thi Nhi Ha (Hanoi). Photo: National Assembly
At the same discussion session, National Assembly delegate Tran Thi Nhi Ha (Hanoi) recommended that the revised Pricing Law clearly state that healthcare service prices at local facilities must not exceed the limits set by the Ministry of Health. Alternatively, it should explicitly reference compliance with Article 110 of the Law on Medical Examination and Treatment.
Regarding retail drug price declarations, Ha pointed out that although this issue is not addressed in the current Pricing Law draft, local authorities have encountered many difficulties during implementation.
She noted that Hanoi has more than 12,000 pharmacies and drugstores, each stocking between 1,000 and 10,000 products.
“We already require price listings and prohibit selling above listed prices. Yet, pharmacies are still required to declare retail prices and place them under the jurisdiction of the city chairman, with delegated authority to the Department of Health. With 12,000 establishments and millions of products, and given the inadequacy of current IT systems, how will this be managed?” she questioned.
According to Ha, wholesale prices are already strictly regulated. Requiring retail price declarations only adds to the workload of local governments.
“Drug prices change frequently. How can we ensure effective management without overburdening administrative systems?”
“Although this issue isn’t part of the current amendment draft, in practice, we see the need to reassess it to ensure feasibility and avoid adding more burdens to regulatory bodies,” she concluded.
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