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S137: A Study on the Influencing Factors Related to the Effectiveness of Centralized Drug Procurement





Poster Presenter

      Chuanyu Niu

      • MPhil
      • Institute of Chinese Medical Science
        Macao

Objectives

This research focuses on selecting the changes of drug proportion in various provinces and cities, combining statistical data, analyzing the current situation and influencing factors of drug procurement, providing reasonable explanations for the current situation in drug procurement.

Method

Through an empirical study, analyze procurement behavior of provinces and cities in the context of drug pooling policy, conduct an evaluation study on the effect of drug pooling policy from the perspective of economics, explore how to normalize and institutionalize drug procurement with quantity.

Results

This research analyzes the current situation of centralized drug supply in China and investigates the key factors affecting the effectiveness of centralized drug supply in China using a fixed effects model. In recent years, the deepening of healthcare reform and a series of government policies to abolish drug prices have provided favorable background conditions for the centralized drug procurement model in China. At present, China's centralized bulk drug procurement has gradually realized the linkage of quantity and price and the integration of procurement, further breaking the status quo of "subsidizing medicine with medicine", effectively lowering drug prices, bringing order to the drug market, and solving the problem of "difficult and expensive medicine" for the people. It has taken a solid step forward to solve the problem of "difficult and expensive medication" for the people. This research first analyzes the current status of China's drug procurement policy, which has gone through the process of "comprehensive regulation" - "control and liberalization" - "centralized procurement". -Since 2015, with a series of government policies on centralized drug procurement price regulation, the proportion of drug costs and per capita drug costs have indeed shown a decreasing trend, which shows that China's policy of strengthening drug procurement has really produced results and centralized drug procurement is an inevitable choice for China's reform and development. The centralized procurement of drugs is an inevitable choice for China's reform and development. At the same time, it is necessary to promote medical insurance and medical reform to better reduce medical costs and ensure the quality of drugs while lowering drug prices, so as to better improve China's drug procurement system.

Conclusion

Regarding the empirical evaluation of the effect of centralized drug procurement policy, the main conclusion of the empirical study of 31 provinces and regions through provincial panel data in this paper is that the increase in per capita disposable income and centralized drug procurement policy are important reasons for the decrease in the proportion of drug costs to pharmaceutical costs in China. With the increase in per capita disposable income and the promotion of centralized quantity procurement of drugs, the inpatient drug costs decreased significantly. Meanwhile, the proportion of drug costs is positively correlated with the coverage rate of urban workers' medical insurance, and when the coverage rate of medical insurance increases year by year and the reimbursement amount of medical insurance increases with the deepening of medical reform, it also leads to a subsequent increase in drug costs. This paper also finds that on the factor of centralized drug procurement, the effect of centralized drug procurement on drug cost reduction is more pronounced both in terms of provinces and regions with high per capita disposable income and in terms of provinces and regions with high urban workers' medical insurance coverage, indicating that the policy implementation is more effective in these regions, which may be related to a more mature policy environment. In addition, there are more uncertainties in the impact of demographic indicators such as population aging and education level on drug costs, which is the result of a combination of factors.

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