Singapore: Following reports that a hospital operator in Changhua County, Taiwan was convicted for alleged defrauding, the Taiwan Healthcare Reform Foundation has emphasized for changes to the existing drug price system.

Recently top executives of the Show Chwan Health Care System, which runs seven hospitals in Taiwan, were questioned by prosecutors in connection with suspicion of fraud in the purchase of medication.

Mr Huang Ming-ho, Show Chwan superintendent was found to be guilty of setting up a company in 2010, under the name of his nephew to buy medicine in bulk at discounted prices. The company then allegedly resold the drugs to Show Chwan at full prices, with Mr Ming-ho pocketing the profits.

Ms Joanne Liu, chief executive officer of the foundation, has urged the government to impose stricter supervision, stating that the existing drug price check has failed to address the problem of fraudulent claims from hospitals.

The foundation urged that the government must stress on registering the prices of drugs and medical equipment by checking both the logistics and parties involved in the drug transactions to minimize fradulent activities.