Rampant IV use leads to 390,000 deaths a year in China

Rampant IV use leads to 390,000 deaths a year in China: report

Staff Reporter

2013-09-12

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Sick children with intravenous drips in a hospital in Beijing. (Photo/Xinhua)

Over 390,000 deaths in China are caused by unsafe intravenous therapy each year, with 200,000 of them being caused by fatal reactions to drugs delivered, the China Alliance for Safe Injection estimated. At least 100,000 persons died in the country each year after receiving IV fluid infusion, they added.Official data showed that patients used more than 10 billion bottles of IV fluid in 2011, equivalent to eight bottles per capita, far higher than the international level of 2.5 bottles to 3.3 bottles, the Guangzhou-based 21st Century Economic Report said.

Since UV therapy was introduced in China in the 1990s, this method of therapy has developed rapidly across the country. People with symptoms indicating anything from flu to gastroenteritis or TB are prescribed the IV therapy.

The excessive use of IV fluids can cause a certain extent of damage to the human body and boost drug resistance in patients, the report noted.

Since purchasing IV fluids allows hospitals and doctors to receive greater financial benefits in the form of kickbacks from pharmaceutical companies than oral medicines, hospitals and doctors usually risk using the IV fluid therapy.

Some hospitals even evaluate the monthly performance of their doctors based on the amount of drugs — including IV fluids — that they prescribe. This puts an incentive on IV fluids with the types of medicines most often prescribed by doctors, according to the report.

Under such circumstances, a chain of interests among hospitals, doctors and pharmaceutical companies has been created.

Since the Chinese government prioritized marketization under hospital reform in 2004, revenue generated from medicine has become a major profit source for hospitals aside from government subsidies and service fees. It now accounts for more than 40% of the total.

Generally speaking, because the prices of IV fluids and drugs are much higher than oral drugs, the more such products are used, the more economic benefits hospitals can draw.

In addition, increasing the use of IV fluid therapy and arranging health checks for patients increases hospital occupancy rates, another boost to their profits. These are all factors affecting the widespread use of IV fluid therapy, according to the report.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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