A new independent administrative agency will be set up in April 2004 to support victims of tainted or faulty medications and to simplify approval procedures for new drugs and medical equipment, health ministry sources said Thursday.
The new entity will integrate the functions of three semigovernmental organizations, in line with a Cabinet decision made in December.
It will collect funds from companies involved in cases where drugs have damaged patients' health and provide medical expenses and pensions to victims and next of kin. It will also gather information on the side effects of new drugs, the sources said.
The three semigovernmental organizations have a total of about 180 employees, but the new agency will have 280, triggering concern that it is running counter to administrative reform efforts to slim down the bureaucracy.
The head of the new agency is expected to be chosen from among former officials of the Health, Labor and Welfare Ministry.
The agency's staff, to be recruited from the three organizations as well as the ministry and related research institutions, will effectively be employees of a private organization, not public employees.
The agency is expected to introduce promotion and salary systems based on merit and ability.