The COVID-19 pandemic has had a huge impact on the global supply and demand of medical devices/materials.   A huge number of China-made products have made their way into the market in Taiwan because of their cost advantages.  Many worry that, under the NHI budget constraint, this intrusion of products from China may have an adverse effect on the healthcare environment in Taiwan.  Dr Du Cheng-Jer of the Cheng-Ching Hospital expressed that the authority’s strict price control policy will deter medical device manufacturers, and the market will be dominated by inferior products.

According to a 2021 study conducted by the Industrial Technology Research Institute, the value of the medical devices/materials imported from China has grown by 30% in just 2 years.   Though it seems that such products are in a free market based on competition, the NHI’s price-and-volume survey mechanism and its fixed reimbursement prices, however, give Chinese products a price advantage.  In the long run, well-known international brands could be forced out of the market.

A survey conducted by a market research company on the public’s attitude towards the origins of medical devices revealed that over 90% of the public expressed that they do not have confidence in China-made medical devices/materials.  About 80% of the public expressed their concerns about the effect on the quality of NHI-reimbursed medical devices/materials and the risk of limited choices of brands in the future.

Dr Du expressed that though the government has requested the TFDA to support the development of domestic medical device industry, it is difficult for start-ups to compete with Chinese manufactures who already have a competitive price advantage; and the NHI reimbursement prices are probably not enough to cover local manufacturers’ R&D costs. 

From a doctor’s point of view, a safe, easy-to-use and inexpensive product is certainly the optimal choice.  However, if the NHI reimbursement prices are driven down by the results of price-and-volume surveys, it will certainly affect the healthcare quality.   For example, new generations of artificial joints have been used in western countries, but patients in Taiwan can only access older versions.  Why?  It is because that the NHI’s prices are too low to attract international manufacturers to Taiwan.

Dr Du expressed that the government should not unduly restrict the NHI prices and self-payment options as they would deter international manufacturers from entering into Taiwan.  Also, the government should encourage local manufacturers to engage in R&D to maintain our healthcare autonomy and allow patients in Taiwan to access the world’s most advanced healthcare products.

【2022-08-25 / United Daily】