Abnormal Rise In Prices Of Essential Drugs Produced By Many Companies And Competition Policies

Deepening the reform of the medical and health system in 2019 should be guided by Xi Jinping’s thoughts on socialism with Chinese characteristics in the new era,fully implement the spirit of the 19th CPC National Congress and the 2nd and 3rd Plenary Sessions of the 19th CPC Central Committee,and conscientiously implement the strategies of the CPC Central Committee and the State Council on implementing a healthy China And deepen the decision-making and deployment of the reform of the medical and health system,adhere to the people’s health as the center,adhere to the basics,strengthen the grass-roots level,and build a mechanism,and tightly focus on transforming the treatment of the disease to the people’s health as the center,implement prevention as the center,and strengthen Disease prevention and health promotion are focused on solving the difficult and expensive medical treatment,deepening the reform of medical care,medical insurance and medical linkages,and unswervingly promoting the implementation of medical reform to bring benefits to the people.Consolidate and improve the national essential medicine system,take provinces as the unit to determine the proportion of essential medicines used by various types of public medical institutions,and establish priority use incentives and restrictions.As an important part of the national essential medicine systemr the design of the essential medicine procurement system is particularly important for the price and quality of essential medicines.Compared with high-priced patent medicines,the expired basic medicines are cheap and highly effective,reducing most of the patients’ economic expenses,especially for some patients who have long-term medications such as cancer and chronic diseases,the basic medicine is the "lifesaving medicine".Under the bidding system for essential medicines,if multiple pharmaceutical manufacturers participate in the bidding process,the companies should compete for price reductions.However.as a result of centralized procurement in reality,the prices of essential medicines in some manufacturers have soared more than 10 times.Reasonable price increases can guarantee the innovation and operation of manufacturing enterprises,but the price of some basic drugs has risen again and again,and frequent shortages have seriously violated the basic purpose of the state’s implementation of the basic drug system to safeguard people’s health and protect people’s livelihood.And many manufacturers in the pharmaceutical bidding are consistent.This article summarizes and summarizes the bidding models under the current centralized procurement system for essential medicines in various provinces.Taking real-life prices of essential medicines produced by multiple enterprises as examples,the study finds that under the "dual envelope" procurement model,the bidding unit will Revenue,annual sales,company awards,and company size are used as technical standard scoring standards.These standards are related to or irrelevant to the quality of a drug,and the shortlisted companies vary.In the quotation of commercial bids,the level of drug prices determines whether the company wins the bid.The national and provincial shortage medicine procurement model aims to adjust the shortage medicine price through the market mechanism.Due to the asymmetry of information on the bidders and bidding companies in the pharmaceutical market,the regulation is difficult,the enterprises are speculative,and it is easy for manufacturers to misreport information to enter the shortage medicines catalog Price increase.The basic drug bidding system lacks a punishment mechanism for collusion.Research conclusion:Many companies have insufficient incentives to participate in the dual-envelope procurement model.Commercial bidding is related to the level of the price.When many companies participate in the bidding process,competition will inevitably be fierce.When the price is already low and the profit margin of the company is thin,in the absence of vicious bidding control,the company may have a vicious bidding.Even if you ca n’t win the bid or because the profit is small,you will deliberately quote a "stuck price",that is,a price that you will win but will not produce.Even if you produce it yourself,it will not be profitable,and the quotation will be much lower than the cost.Winning the production at a reasonable price will not allow competitors to win production at a reasonable price,or they will not produce after winning the bid,and will not supply for various reasons.There is asymmetric information in the drug market.There is a shortage of real output and cost information of drug companies than in the bidding units.In the case of a large number of drug entrepreneurs,the bidding unit’s regulatory costs increase,and the regulatory difficulty increases,which guarantees the countries where the drug companies are short of production.The shortage of drugs at the provincial and provincial levels has become a means for many pharmaceutical companies to increase their prices.Moreover,under the current procurement system,there is a lack of control mechanisms for collusion among enterprises.Even under the conditions of competition among multiple enterprises,a monopoly on raw materials can organize collusion among downstream enterprises.Vertically integrated enterprises can attract a small number of upstream companies to conspire to control inputs,and then control downstream companies to bid higher prices.This paper finds that there is a large-scale drug calcium gluconate injection in reality.Since the participation in the bidding procurement,there is a finished drug company that is both upstream and downstream.The act of controlling the price increase of the finished drug has seriously affected people’s lives and safety.The price is closely related to the degree of competition in the market,and how the design of the basic drug price system can more ensure fair competition among multiple companies is particularly important.This article proposes to improve the mechanism for purchasing low-cost medicines,increase the punishment for false supply cuts,strengthen control over vicious bidding,and increase investigation and punishment for collusion.