Research On The Mechanism Of Drug Price Formation In China From The Perspective Of Institutional Transaction Cost

The affordability of drug costs is related to the lives and health of the people.Under the situation of rising drug costs,domestic and foreign governments are paying more and more attention to the management of drug prices.Price is an important adjustment lever for market resource allocation.The change in drug prices directly determines the level of drug costs and the competitiveness of the market.Optimizing the drug price formation mechanism is conducive to promoting orderly competition in the pharmaceutical market,reducing the burden of people's medical treatment,continuously improving the health of the people and improve the quality of people's lives.Objective: This study selected the retail price index of Chinese and Western medicines and medical care products in China for nearly ten years as sample data,and sorted out the drug price control policies promulgated by China in the corresponding time range,using time series analysis method,and establishing the intervention for self-confidence.The Regressive Moving Average(ARIMA)model quantitatively evaluates the policy effects of China's drug price control,and analyzes the problems existing in the process of drugprice formation in China from the perspective of institutional transaction costs,and then proposes to optimize the drug price formation mechanism and reduce the people's drug costs.The countermeasures for the burden.Methods: By consulting the literature,the China Health and Family Planning Statistical Yearbook,browsing the official website of the China National Bureau of Statistics to obtain relevant information for research,establishing an ARIMA model for performance evaluation based on time series analysis,and analyzing the intervention variables for the retail of Chinese and Western medicines and healthcare products.The impact of the price index,thus quantitatively evaluating whether the drug price control policy implemented since the new medical reform in 2009 actually achieved the purpose of curbing the price increase of drugs,and then based on the relevant economic theories such as transaction cost theory,from the perspective of institutional transaction costs The root cause of the problem of high drug price is given and the corresponding improvement suggestions are given.Results:(1)During 2009-2019,the Chinese government promulgated 10 drug price control policies.According to Eviews10.0 software analysis,the dummy variables of the 10 drug price control policies changed to have negative regression coefficients for the ARIMA model.There are 6 items with positive regression coefficient,but the absolute value of regression coefficient is small,indicating that the policy effect is not high;(2)the drug price is virtual through three aspects: asset specificity,transaction uncertainty and transaction frequency.After analyzing the reasons for the high formation mechanism,it was found that the institutional transaction cost in the process of drug price formation was subject to the administrative monopoly status of the hospital,the “rebate” in the doctor's prescription,the information asymmetry,the unreasonable basis fordrug pricing,and the imperfect circulation system.When the impact is higher,the higher the institutional transaction cost,the higher the price of the drug.Conclusions:(1)The impact of various drug price control policies on drug prices is not significant.Some drug price control policies and measures have even caused a small increase in the drug price index,indicating that the system has certain defects;(2)institutional transactions.The cost-related theory has a significant effect on analyzing and solving the problems and causes of the drug price formation process.From the perspective of institutional transaction cost,the research on the drug price formation mechanism can be concluded,improve the centralized drug bidding procurement system,and establish and improve the drug price in China.Negotiating mechanisms,strengthening public opinion supervision and punishment,and planning and step-by-step implementation of drug separation and other policy measures can play a role in optimizing the drug price formation mechanism.