In a current atmosphere of system’s reform aiming at turning over a whole new leaf and accentuated by the media’s spotlights focus on the recent investigations and crackdowns on companies in China. Thus, the healthcare industry will have to operate with tougher compliance risks and more frequent interaction with the Central government.
Policies and procedures are changing in order to be simplified and more transparent, leading Big Pharmas and the other healthcare actors implement programs to ensure they will respect these and upgrade their activity processes to comply with the new regulations.
Among the main actions to implement and deal with the new standards, companies will first have to prepare a training courses for employees on how to handle investigations; they will also need to conduct compliance and legal risk assessment; financial and accounting practices have to be reviewed with internal control procedures; companies must conduct proactive internal audits and investigate on suspected violations, as well as detailed due diligence on third party intermediaries such as agents and sales representatives;
Globally, the current situation requires from every company to be able to take prompt action if faced with evidence or allegations of wrongdoing.
Chinese government authorities’ actions have led to new behavior requirements that can be reached only through compliant structural improvement.
Source: www.mondaq.com Publication Date: 2013-08-01