The Economic Analysis On Falsely High Price Of Drug In China

At present, the problem of the pharmaceutical price is at high level all the time is becoming more and more serious, which not only causes the problem of seeing doctor expensively and difficultly, increasing the pharmaceutical expense, affecting the health of broad masses of people, but also, affects the health of society, influences the development of economy. The falsely high price of drug is a serious problem which needs to be solved in the process of constructing harmonious society.From the beginning of 1997, China's Government has imposed eighteen orders of decreasing drug price successively, and by the same time, bidding procurement policy was implemented in order to reduce drug price, but these measure didn't achieve the desired results, the price of drug still remains high. It can conclude that there aren't good countermeasures in China so far. Finding the reason of the falsely high price of drug and using the foreign countries' experience to control the price of drug is the purpose of this dissertation.This paper illuminates current situation of the falsely high price of drug firstly, and analyses some characteristics of medical service market which is closely related to drug price. The dissertation analyses the cause of the falsely high price of drug from economic view. To illuminate the brokerage issue, a simple mathematical mode is used. In the price formation process, Interest groups continue to carry out the Game, which to some extent leads the price of drug going on.Knocking down high price of drug is a complex system task. Based on the analysis of the causes of falsely high price of drug, this paper propose establishing a sufficient number of available options with a variety of different ownership of medical institutions in order to break the monopoly of hospital operating system., reforming medical institutions economic compensation mechanism and strengthening the pricing management of drug.