BackgroundThe essential medicine policy is a great reform of the medical system which is in the core position of the drug supply security system in our country. In essence, it carries out a complete reform of regulatory including the drug production, distribution and the rational use, and the circulation system reform makes the maximal changes in all of them. Below policy drive, prices of essential medicines have spiked, the enlargement of essential medicine policy expands the market size, as well as the availability of drugs. Otherwise, the driving role of the reform promotes the development of electronic commerce with will benefit business order and it will encourage the reorganization of enterprises to an advanced stage of business model.We have also carefully noted that there are still serious conflicts such as the short supply of goods, slow delivery and price disorder et al. these problems are mainly due to the economic value of policy itself and the original environment of circulation systems. These results suggest there are still many trials in the near future which mean that it will affect the effectiveness, balanced and availability of essential medicines. As is stated above, the inherent inferior of policy environment is common and the policy reforms are more vulnerable to the incomplete, blind and uncertainty changes. Therefore we have to make further study on the market condition and the developments according to objective law due to the essential medicine policy and to make a further open and orderly environment by active exploration on macro-modulation in the socialist market economy.ObjectiveThe article presents the changes and features of essential medicine policy from the layers of system, mechanism and practice which combines with market externality and regulation of the public sectors. Based on this, it concludes the actual influences on domestic drug production, management enterprises, grassroots medical institutions and the society. And the specific purpose includes:(1) To strengthen the research on the basic theory on circulation policies including the definition, content, classification, functions and so on. Meanwhile, to have a complete understanding on the current development, management policy, problems and variation tendency of pharmaceutical distribution through literature review.(2) To summarize the policies and regulations associated with drug distribution from the central and local governments. And to display the whole system by policy analysis on contents, functions and characteristic which aims to make a deep analysis on essential medicine policy.(3) To point out the favorable changes of the drug market and management model related to policy of pricing, bidding and so on. It has also collected some passive behaviors from the perspective of production, supply and sale, which aims to reflect the deficiencies and system barriers. (4) To give suggestions concentrated on the upgrading of circulation and administration of essential medicines based on the comprehensive study of the system. Thus it would provide useful recommendations for further policy adjustments.Data and methods1dataThe qualitative data mainly comes from literatures and dissertations of CNKI, EBSCO, PubMed, Medline et al by using the key word of essential medicine, circulation, price and so on which aims to collect the information of policy adjustments in and out of china. And the public documents related to bidding, logistics management and pricing et al are achieved by visiting the website of governments departments.Some quantitative data, such as the amount of sales, shipping amount, market distribution et al, comes from the annual statistical report of ministry of commerce, pharmaceutical commercial association in china. And some others such as purchases, timeliness rate, number of enterprises, property are obtained from the government notice.2Methods(1)Normative studyThe normative study mainly focuses on the goals and approaches of policy with characteristc of value and ethical. Some methods of qualitative research are employed in the study which to demonstrate the pros and cons. In the artical, it studys the circulation system related to essential medicine policy by describing and reasoning which reflects the inherent value conflictand relationship between economic phenomenons. All tthose are conductive to elaborate the positive and negative significance from the perspective of true value. (2) Policy analysisPolicy ananlysis takes the social problems as the object of the study and set comprehensive study on the actual policies. In this article, it summarizes all the policies of ciuculation system related to the essential medicine policy and discusses the target, process and results from the angle of government action and market response. Thus it proposed a set of related policy recommendatons.3Comparative analysesIt selects some innovative policies related to the essential medicine policy and makes comparative study with the traditional regulations which can help to distinguish the differences in properties od circulation. It can slso find out the differences and the trends of policies.4Enpirical approachUseing the data of price, delivery data, componeats of shortages et al, the paper emphatically studies the effects of drug policies, market response and changes of supply chains. Meanwhile, it analyzes the existent reason from the angle of price, bidding, market access and so on.Results1policy theoryPresently, the essential medicine policy is the core of drug policy in china which also constitutes the important part of the medicine circulation system reform. Some innovative measures have been implemented and have achieved positive impact. But some measures also bring uncertainty in the aspect of circulation of essential medicine and some even trigger new market risks. Therefore, intensive study should be made which aims to analysis the cause of problems and to provide further policy adjustments in the future.2PracticesThe circulation order and modernization of drugs are closely connected with essential medicine policy. During the period of new medical reform, it has issued a number of reform measures and the variations mainly come to these aspects:Firstly, from the standpoint of transaction, a zero sales rate policy for essential medicine is made which promotes the separation of medicine and drugs. Two envelop bidding method takes the place of comprehensive evaluation method which brings innovation mechanism for drug bidding. And with the help of online trading platform for pharmaceuticals, the trade cost has been cut down as the integration of transaction, purchasing and delivery.Secondly, from the standpoint of regulation, the number of supplier decreases as the implement of single source commitment which also improves concentration consequently. The coordination mechanism of supply and demand is founded as the establishment of the market docking. And it intends to improve transparency of price as a result of the mechanism of reference price and linkage price.Thirdly, form the standpoint of order, restrictive measures increase the difficulty of market access for medicines and promote the optimization of types and specifications. What’s more it makes selection for distribution enterprises with enforcing management and to ensure the implement of the contract.3EffectsJudging from the economic are, the price of essential medicine falls and it incurs less reliant for drug income for primary health institutions. And the amount of sales increased especially for exclusive drugs and Chinese patent drug. As linkage of bidding, the transparency of price is high. In addition, automated system for transactions has become popular which greatly promote the e-commerce development.Judging from the development of industry, the scale of outstanding enterprises gradually escalates expands by merging the small ones. And the status of the manufactory enterprises comes to a high position and plays a great role in some certain areas. Meanwhile, the logistic facilities have upgraded and the business growth promotes the third party logistics companies and the logistic park which favors the integration of the industry.4Deficiencies(1) Some essential medicines are artificially low priced which is liable to cut-throat competition; the collection of price is inefficient which cannot demonstrate the exact cost; in some areas, the essential medicine has clapped an extra price and it indeed disturbs the order of market.(2) Some regulations for bidding are against the laws of market and leading a low selectivity for drugs which cannot ensure the principal position for entities. Whereas, there are large differences of regulations in different provinces and it will consequently lead to market segmentation.(3) The delivery for essential medicine is in low speed with disorder circulation. The transformation progresses at a slow pace in some enterprises which will go against the supervision.Conclusion and suggestionThe policies related to essential medicine bring positive changes in transaction, industry order, and information construction et al. All those comply with the development of pharmaceutical circulation system and will promote profound changes in medical reform and the construction of socialist market economy.As lacks of time and system barrier, the new policies are likely to cause the inhibition in the short-term. Therefore, we have to deepen reform especially to adjust the coordination of circulation system, the medical system and the management system which aims to mediate the conflicts. |