Siemens bribes rumors behind the rumors of Chinese and foreign manufacturers

Recently, according to Reuters, China’s State Administration for Industry and Commerce last year launched a survey on Siemens to find out whether its medical department and distributors bribed hospitals to buy high-priced disposable products for some of their medical equipment . In addition, there are also two companies, General Electric (GE) and Philips, which are said to have more than 70% market share in China's high-end medical equipment sector.

However, the spokesperson of the State Administration for Industry and Commerce said on May 4 that the State Administration for Industry and Commerce did not conduct an investigation into the commercial bribery of Siemens and did not accept interviews from relevant media.

In this regard, GE medical public relations director Li Guowei told the "China Business News" reporter: "I have not heard of such an investigation, GE to do products and services in accordance with market competition rules and tendering requirements." Philips China Group Communications Department also replied ""Philippines has been rooted in China for 30 years and is committed to business principles of integrity, fairness and fairness, and carries out all business activities within the scope of laws, regulations and business ethics."

Although it is only a rumor, the overwhelming media coverage is undoubtedly a big hit for Siemens Medical.

Bribery rumors

After the news of Reuters broke out, China’s online media followed suit and mentioned in the report: The source said that Siemens and its distributors violated Article 8 of the Anti-Unfair Competition Law and exchanged agreements through donated equipment. This allows the hospital to purchase the chemical reagents required for the use of Siemens medical equipment. The survey for Siemens involves up to 1,000 hospitals.

And a Siemens medical insider told reporters that on May 3, I learned that the Internet had been rumored about the company being investigated. On the morning of May 4, the company held a meeting to inform all employees of the uniform calibre for partners and customers. The inquiry indicated that he did not know. “The company promised to let us rest assured that the investigation by the State Administration for Industry and Commerce was a fake news.” On the evening of the same day, CCTV reported that the statement of the Industrial and Commercial Administration denied the investigation was consistent with the clarifications made within Siemens.

In this regard, on May 14, Siemens said in a written reply to the reporter: "The company is not aware of the news about Siemens China's medical business in the news report. The fact is that a branch of Shanghai's industrial and commercial administration department The organization is learning about the market and business model of the Siemens Medical Lab Diagnostics business, which is widely adopted in the global industry. Contrary to recent media reports, this work does not involve any corruption issues, but also with any personal interests. Nothing. Siemens has been actively working with the business sector to eliminate the concerns of the relevant departments as soon as possible."

Previously, due to the decline in performance and other reasons, on May 7, Siemens announced that it has laid off 4,500 people worldwide, including 2,200 layoffs in Germany. The situation in China has not yet been announced. In February of this year, Siemens has announced that it will cut about 7,400 jobs worldwide.

In the past year, Siemens has sold the medical IT department, clinical microbiology business and hearing aid business. After divesting the above three businesses, the medical business has also been split and independently accounted for. In the past few years, due to the radical medical policy of Siemens, the high growth target set up has created a fake order event. After the exposure, Siemens medical dealers in the Chinese market will give a large refund.

Shi Lichen, head of Beijing Dingchen Medical Consulting, told this reporter that not only foreign-funded enterprises, but many domestic medical device manufacturers are giving medical institutions the right to obtain medical devices through institutional donations or direct donations. Reagents or other consumables.

Fei Yinuo (Suzhou) Co., Ltd. CEO Lishui also told this reporter that the Siemens medical marketing model is common practice in the industry for diagnostic equipment.

A person who did not want to be named in GPS told reporters that a high-end equipment called "Biochemical Immunization Line", which was put into a large domestic hospital, purchased disposable supplies such as reagents and cleaning fluids up to one year. More than 25 million yuan. “It’s normal to buy more than 5 million consumables a year. Now our VIP customers have to spend more than 10 million yuan.”

However, some insiders believe that the incident was caused by excessive competition in the industry. Shi Lichen said that the bribery incident "is someone making a paradox." He believes: "The media first mentioned Siemens, and the other two (Philips and General Electric) just mentioned it by the way, especially when it comes to data related to 1,000 hospitals, it is even more unreal."

Monopoly dispute

In recent years, the Chinese government has continuously improved its anti-corruption efforts in the medical field, and medicine and medical equipment are high-risk areas for medical corruption.

A salesperson in the medical equipment industry told reporters that in recent years, many people he knows have been arrested, and there are hospitals and enterprise personnel.

According to industry insiders, the word "bribe" does not appear in a large foreign company like Siemens. Even if Siemens Medical has a gray transaction, it exists at the dealer and agent level. The compliance management within foreign companies is relatively strict, and even if there is a bribe, it will be clever and concealed.

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