During yesterday’s Cabinet meeting, the new version of the draft law regarding medicines and medical equipment was discussed and approved. Minister of Health and Sport G. Shilegdamba was assigned with revising the final version of the draft law and submitting it for approval by Parliament.     

Although the law on medicines and medical equipment approved in 2010 has played a vital role in the foundation of a legal environment for the medical sector, due to the rapid increase of medicines being procured and changes to policy structure, the draft law's supporters believe that it has become necessary to review the standards of quality, security, and the utilization of medicines. 

According to a 2013 study, 19 percent of medicines on the market have not been registered in Mongolia and 14.6 percent do not meet industry standards. Only one percent of the nation's pharmaceutical producers meet requirements for proper medicine manufacturing standards.  

During the last four years, the import of medicines has tripled, and hospitals are buying medicines at prices that are 2.4 times higher than international standards. 

With the introduction of new treatments and technology, new medicines and medical instruments have been introduced to the healthcare industry. Hospitals and clinics supply 80 percent of medicine to the public, but hospital administrators say that current economic conditions and the weaker tugrug are having an impact on hospital budget expenditures. Inefficient procurement systems are also negatively influencing medical treatment and diagnoses.

According to the new draft law, a new system will be created to provide accurate information and data regarding medicine and medical equipment, as well as a legal environment to establish the maximum prices for essential medicines and standard prices for essential diagnostic equipment and instruments.