A Study On Pharmaceuticals Price Regulation In China

Recently in China, the problems of rapid increase of drug expenses, deceptive high price and price disorder of pharmaceuticals have greatly affected national economics development and health care standard. Pharmaceuticals price regulation is a means to contain drug expenses as well as an economic tool to support pharmaceuticals industry. These two contradictory aims in demand and supply make it difficult to successfully apply. China has formulated a series of policies on pharmaceuticals price regulation, but these problems haven't been really solved. The main reason is that China doesn't have a scientific regulation model to instruct pharmaceuticals pricing, or a comparably perfect regulation system. The purpose of this paper is to perform an appropriate pharmaceuticals price regulation model and a comparably perfect pharmaceuticals price regulation system for China.The paper has six sections. The first section reviews the results and shortages of relative articles and points the value and the procedure of the paper. The second section analyzes the particularities of pharmaceuticals and pharmaceuticals market and the necessity of pharmaceuticals price regulation, and proposes the common points and useful experiences after comparing main regulation systems abroad. The third section analyzes the results of pharmaceuticals price regulation and summarizes the weakness in pharmaceuticals price regulation system of China. The fourth section elaborates the process of performing the pharmaceuticals price regulation model. After making clear the aims of pharmaceuticals price regulation, the paper analyzes Rate of Return and Price Cap regulation models and introduces pharmacoeconomics indexes. Finally the paper performs a pharmaceuticals price regulation model for China. The fifth section demonstrates the ideas of perfecting pharmaceuticals price regulation system in China from regulation rules, regulation organization, price system and supporting measures. The final section is the conclusions of the whole paper.The paper has two main innovative points. Firstly, the paper performs a pharmaceuticals price regulation model after analyzing applicability of Rate of Return and Price Cap regulation models and introducing pharmacoeconomics indexes. Secondly, the paper applies economics of regulation to analyze the results of pharmaceuticals price regulation in China, and explains the reasons of regulation failure, and finally proposes ideas of perfecting pharmaceuticals price regulation system for China.