Drug Prices Legal Regulation Of Research

As one of the most important part of state power, governmentwas born with the highest authority which influences not onlyother organizations but also individual citizens. It has duelproperties: on the one hand, it has the function of dealingwith public matters. On the other hand, it functions as aspecial system of management.As the advancing of market-oriented economic reform sincethe 3rd Plenary Session of the 11th Congress of the CCP, therealso is a shift and reform of government functions, from aauthority-centered society to a capability-centered society,from a society of government to a society of people, from anall-mighty society to a power-limited society, from aone-way-control administrative system to a negotiated andco-operated management system. During this discourse, we haveseen dramatic changes and great achievements in the fields ofpolitics, economy and culture. While at the same time we haveto know clearly that a lot of social problems also come withthem, especially in the fields of medical service, employment,and education. There are various reasons. As we know, thepolicy of reform and opening-up has a great shock on people's ideas and values. What is more, it is essentially becausethat the government has not paid enough attention to theessence of some problems in the shift of government functions,especially problems concerning sanitation and medicine.In most developed or developing countries, medicine iscontrolled and distributed by governments according to law andits expense is included in the government financial budget,While the case in China is different. Since we launched thereform of medical system in 1980s, our government has reducedthe subsidies to hospitals gradually and the controls to the medical prices have been not as strict as that in earlierperiod. As a result, we are now faced different kinds ofmedicine problems. Luckily, our government has realized theseproblems and has adopted series of strategies. In 2001, TheDrug Administration Law of the People's Republic of China wasapproved. In 2002, The Detailed Rules of Drug AdministrationLaw was approved, which provides that it is specialdepartments of the government that take in charge of themedicine management.Now, the price problem is more and more obvious. However,there is no revised version of The Drag Administration Law ofthe People's Republic of China for adapting itself to the newenvironment. The lag of law leads to a big difference betweenthe prime price and the retail price. In order to narrow thisgap, experts in different field put forward lots ofsuggestions, including furthering government support formedical enterprises, simplifying the circuit channel ofmedicine, limiting the factory price and rooting out themedical system that supports the medical treatment or hospitalby medicine. In addition, the 16th National Congress of theCommunist Party of China proposes that in order to solve thecurrent major social problems and to construct a harmonioussocialist society in an all-round way, we have to insist ontaking scientific development view as guidance, set up theman-orientated idea, and take effective measures to have acontrol of the virtual-high medicine price with an attempt tosafeguard the essential interests of the most people andconstruct a harmonious socialist society. After having a wholepicture of the different price-controlling measures adoptedby foreign countries and having a survey of our currentrealities, the author of this thesis bears the opinion thatthe primary thing we have to do is to legislate a special law which will provide the management of medicine price. At sametime, the author makes a suggestion that we should set up aspecific organization to manage issues concerning medicineprice.In order to support this argument, the author divides thewhole paper into five parts.The first part is an introduction. After a briefintroduction of government functions, she describes the shiftof government functions in China and its influence. Then shebrings out the problem of virtual-high medicine price.In the second part, the author analyzes the management ofmedicine price in the angle of relative laws. Through ahistorical review to the model of medicine price managementand a research to the realistic phenomena, she finds out thatthe behavior of medicine prices management is a typicaladministrative act. Therefore, during the management, thegovernment should abide by the following three principles inthe administrative law: the principle of responsibilityadministration, the principle of administrative openness andthe principle of proportionality.In the third part, the author analyzes the currentsituation of the applied medicine price management. At first,she introduces the current system of medicine price managementin China in the aspects of pricing range, pricing method andprice supervision, aiming to show the problems coming from it.Then she points out that the medicine price soars is becauseof the incompleteness of the price assessment system and lawsconcerned, as well as the ineffective management of theco-ordination between different organizations.In the forth part, the author shows the enlightenmentslearned from other countries. By analyzing systems of themedicine price management in countries like Japan, Britain and India, she keeps the concepts that it is a popular choice thatthe price of medicine is fixed and controlled by governments;suppressing the price rise is the basic goal of pricingmedicine by governments; we should adopt different policiestoward patented drugs and generic drugs; the medicine pricingshould be focused on most when they are in retail; and we shouldconstruct a complete pricing system.In the fifth part, the author puts forward her own ideasover the management of medicine price. She thinks that weshould set up a specific organization to manage issuesconcerning medicine price, and revise The Detailed Rules ofDrug Administration Law. In order to make it much more easilyto carry out, she even specifies the detail content of thislaw, including the legislative intent, scope of application,fundamental principle, basic system, subject, extent ofauthority, rights and duties, legal responsibilities and soon. What is more, we should complete the public participationsystem, the system of performance evaluation and the systemof information publicity. Last but not least, we shouldstrengthen the coordination between different organizations.