(Yicai Global) Sept. 9 -- Shares in Chinese oral health firm Topchoice Medical surged by the exchange-imposed limit today after China’s healthcare regulator capped the placement cost of dental implants at public hospitals at CNY4,500 (USD647) per implant, slashing fees by as much as 50 percent in some places, to curb runaway pricing.

Topchoice Medical’s share price [SHA:600763] jumped 10 percent to close at CNY124.66 (USD18). The big reduction in pricing could spur more people to opt to have dental surgery.

Grade-three public hospitals, which are the biggest in the country, can charge a maximum of CNY4,500 to implant a tooth, the National Healthcare Security Administration said yesterday. This price does not include the cost of the materials. Smaller medical facilities and areas that meet certain conditions can reduce their charges by slightly less.

Fitting costs for tooth implants make up the majority of dental implant costs, reaching CNY9,000 (USD1,300) in some places and CNY6,000 on average, according to the results of a recent survey by the administration.

Dental implants are consumer-targeted medical services, an industry insider told Yicai Global. It is inevitable that charges will be capped and the cut is not unreasonable.

The administration is not only in charge of drug pricing and medical service charges at public hospitals, but also those in private hospitals. The watchdog said it is keeping a close eye on prices in the private sector too.

The Chinese government included dental implants in its national bulk-buy scheme earlier this year in a bid to start bringing down prices. In May, nine ministries and commissions all said they will standardize charges for dental services and consumables.

Dental implants are likely to be included in the national medical insurance scheme soon, the insider said.

Editors: Shi Yi, Kim Taylor