Cause Analysis And Countermeasure Of Pharmaceutical Price Regulation Failure In China

As a necessary of life to protect people’s health,the structure of pharmaceutical’s price has always been a hot issue of social concern.The pharmaceutical excessive price not only aggravate the burden of patients’ treatment,but also increase the government’s medical expenditure.Although Chinese government has initiated a series of regulation policies to adjust pharmaceutical price,the effect is not satisfactory,in general the pharmaceutical price regulation in China is failure.In June 2015,the government cancelled the government pricing of most medicines,in order to determining the price through market transactions.However,this initiative didn’t achieve the expected effect.Based on the experience at home and abroad,effective pharmaceutical regulation is necessary for forming reasonable pharmaceutical price.According to the regulation economics theories,this dissertation analyzes the information asymmetry of pharmaceutical market and the moral risk under third party payment,expounding the necessity of pharmaceutical price regulation.Based on the existing researchs,this dissertation summarizes five significant factors,such as primary-health-care provider,the physician’s prescription,the basis of governmental regulation,the model of pharmaceutical wholesale market and the saling pattern of pharmaceuticals in hospital.Then it explains how these factors influence the components of retail price and proposes five hypotheses.Then the paper test them by using the qualitative comparative analysis method with 28 case countries’ data.The empirical results show that the main reason for pharmaceutical excessive price is the separation of real market research information and the formulation of pricing policies,as well as pharmaceutical kickback.Combining the emperical conclusion,this dissertation points out that the best path to improve the effect of policies is to improve the specific price regulation model,rather than to enforce the medical separation system.At last,it suggests to establish a incentive price compensation mechanism and collect accurate market information to solve regulation failure.