Health Care Expenditure And Bidding Drugs

A dramatic in health care spending have been a worldwide problem. China is facing the problem too. The Chinese government take some measures to lower the speed of expenditure rising. Due to the spending for drugs takes 50-60% in total medical care expenditure, so great attention has been focus on reducing the drugs spending. In the latter of 90's last century, the government propose to invite public bidding drugs in order to lower the total care expenditure. The drugs'price were reduced, but, can the measure take a work needs to study. The essay consists of seven chapter. Chapter 1 reviews the background of drugs biding, the literature on the biding in domestic, the relationship between pharmaceutical industry and drugs spending in abroad. Chapter 2 analyses the raising money in medical section relative to health care expenditure. And we introduce various ways of raising money in developed countries. Chapter 3 introduce the basic principles of biding and practices. We also analyses the profit and cost of hospital, the health care expenditure structure, the assumption of policymaker that reduce the drugs price would lower the total care expenditure and the assumption's limitation. Chapter 4 introduces the characteristics of medical service in health economics. We focus on the physicians posses some kind monopolistic power which can affect the care expenditure. We also discuss the relationship between health insurance and medical care expenditure control, and some factors that affect the expenditure. In chapter 5, we analyses 471 cases'of pneumonia expenditure before and after drug bidding. The result imply that the attempt to reduce care expenditure and drugs spending through bidding is ineffective. In chapter 6, the policy recommendations is reforming the medical system which handicapped the effort to lowering care expenditure. And final part is my conclusion .