Drug Price Formation Mechanism

With the affection of traditional planned economy system, medical and pharmaceutical industry is growing up a complexion of "many, small, scatter, low, chaos". According to economic theory, under strongly competitive market structure, price should be low, but in the matter of fact, it is so high all times, forming the puzzle of pharmaceutical high price. In order to change this actuality and maintain consumers' benefits, China' government comes on a great deal of policies successively to realize the aim to lower pharmaceutical price. Although the implement of these policies have relaxed the soars of pharmaceutical price, but compelling government policies can't resolve the fact of pharmaceutical high price radically. China's existing pharmaceutical price still stains a very high level.It is based on the appearance of hereinbefore problem, starting from the puzzle of pharmaceutical high price, this paper mainly analyzes the price-form mechanism of pharmaceutical from supply and demand, at one time, whereas the China's government pharmaceutical price regulation means, in order to offer a certain theory and practice to administer China's pharmaceutical high price.Detailed content and arrangement are as follows:Chapter one is introduction. At first, it introduces the backward of this subject and advance the ubiquitous phenomenon of pharmaceutical high price in China's medical and pharmaceutical industry, the puzzle arises thereby. Secondly, there gives a literature review on domestic and foreign existing theories about this problem so as to be the base of the following paper.Chapter two advances the particularity of pharmaceutical demand. This chapter mainly points the particularity from the lack-elasticity of pharmaceutical demand, the difference of consumer's preferences, the consumers' disadvantage position in information, and the demand structure. And then the "demand-reason" of the puzzle of pharmaceutical high price is summarized. Based on it, this chapter brings forward that there is also existing market-malfunction in medical and pharmaceutical industry, laying a foundation to the government regulation.Chapter three analyzes the supply factor of pharmaceutical price-form. The "supply-reason" of the puzzle of pharmaceutical high price is concluded from the pharmaceutical industry' structure, the increase of pharmacy-industry's cost, the long exist of medical care system under which we subsidy medical service by pharmaceutical sale, and the pharmaceutical delegate's lobbying.Chapter four introduces the government regulation of pharmaceutical price. This chapter, firstly, in virtue of theories on government regulation, narrates the regulation system and policy evolvement of pharmaceutical price. In succession, it expounds the existing problem about China's government regulation of pharmaceutical price from the following aspects: the pricing policies of pharmaceutical, the pricing methods of pharmaceutical, the public bidding system of pharmaceutical, and the price hearing system, and so on. Based on it, the need of government regulation of pharmaceutical price is put forward.Chapter five is the conclusion and the policies.