A Nalysis On Effect Of Medical Monopoly In Chinese Medicine Supply Ch2in

Medical service industry is an important industry which related to the livelihood of the people. Its development is essential. We can see the rapid development of China’s medical services industry in the recent years. The growth rate of the main business income in pharmaceutical manufacturing industry increased from16.81%to25.64%in the recent ten years. The size of the medical industry from3,488companies in2001to2010of7,039. China’s pharmaceutical industry only have800enterprises in the1980s. Now the number of pharmaceutical producing enterprises in China has reached to8,412.The number of drug-handling enterprises even has reached to142,439.The number of hospitals in the country from18,703in2005to21,979in2011.The number of national hospital beds increased from2,445,014in2005to3,705,118in2011.These data illustrate the rapid development of China’s medical services industry, but it can not cover up many existing problems in the development process of the medical services industry. For example, the difficulty and expensive of see a doctor, expensive drugs, the tension in the doctor-patient relationship, prescriptions, medical corruption. The root cause of these problems is the monopoly of the the downstream medical institutions in the pharmaceutical supply chain. The China Health Statistics Yearbook2012shows that the proportion of China’s government-run public hospitals is very high in2011, while the proportion of private hospitals was small. The number of hospital beds of public medical service agencies has an absolute advantage more than that of the private hospital which share is only13%.Obviously, at this stage, public medical institutions is the most important part of the health service system in China, and bear a greater share of health care services. At this stage in the medical services industry in China, there exists bilateral monopoly in the supply of medical services market and drug retail market, that is to say that medical institutions have the monopsony forces for the upstream suppliers and the seller’s monopoly power for downstream of patients.China’s medical industry is a special industry because of the generally information asymmetry between doctors and patients which makes some problems become more serious. Some problems now become social problems such as the difficulty and expensive of see a doctor, expensive drugs, the tension in the doctor-patient relationship, prescriptions, medical corruption. Medical malpractices are also frequently occur. Many medical problems, including medical corruption, excessive medical treatment, the tension in the doctor-patient relationship and the difficulty and expensive of see a doctor and so rooted in the monopoly of the downstream medical institutions. To solve these problems, we must fundamentally solve the medical problems of monopoly. If the monopoly position of public medical institution does not break, many problems in the healthcare industry can□t get solved well. Medical service industry is an important industry which related to the livelihood of the people. If the problems can not be completely resolved, it may results in more serious social problems which will affect the stability of society. In March this year, the State Council have refined the health reform program in2009. In June the Ministry of Health proposed to reform the compensation mechanism of the drugs, the abolition of the policy of drug addition. At such a turning point in the medical services industry, the analysis of medical institutions monopoly in the pharmaceutical supply chain has important practical significance.This paper firstly elaborated the ups and downs of China’s health care reform, and analyzed the status quo of the pharmaceutical market, the structural condition of the upstream and downstream market and the relationship between each of the main body of the pharmaceutical supply chain from the point of the pharmaceutical supply chain. Then analyze the causes of the medical services industry monopoly, medical administrative monopoly performance and its impact on social welfare. Finally,we make the conclusion that the formation of the medical monopoly is related to medical administrative monopoly, medical information asymmetry as well as relatively small demand elasticity of medical services.