Pharmaceutical policy in China

Health Affairs

Volumn 27, Issue 4, 2008, Pages 1042-1050

  Sun, Qiang ^a   Santoro, Michael A ^b   Meng, Qingyue ^a   Liu, Caitlin ^c   Eggleston, Karen ^d  

^a SHANDONG UNIVERSITY   (China)

^b RUTGERS BUSINESS SCHOOL   (United States)

^c RUTGERS BUSINESS SCHOOL   (United States)

^d STANFORD UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CHINA; DRUG COST; DRUG INDUSTRY; GOVERNMENT REGULATION; HEALTH CARE ACCESS; HEALTH CARE COST; HEALTH CARE FINANCING; HEALTH CARE PERSONNEL; HEALTH CARE POLICY; HEALTH CARE QUALITY; HEALTH CARE SYSTEM; HOSPITAL PATIENT; REVIEW;

CHINA; DELIVERY OF HEALTH CARE; DRUG COSTS; DRUG INDUSTRY; ECONOMIC COMPETITION; HEALTH CARE REFORM; HEALTH EXPENDITURES; HEALTH POLICY; INSURANCE COVERAGE;

EID: 48149101284     PISSN: 02782715     EISSN: 02782715     Source Type: Journal    
DOI: 10.1377/hlthaff.27.4.1042     Document Type: Review

References (50)

1. K. Eggleston, ed., Prescribing Cultures and Pharmaceutical Policy in the Asia-Pacific (Washington: Brookings Institution Press, forthcoming);
2. and K. Eggleston et al., "Health Service Delivery in China: A Literature Review," Health Economics 17, no. 2 (2008): 149-165.
3. China Health Economics Institute, China Health Accounts Report (Beijing: CHEI, 2007);
4. and Y. Zhao et al., "Results on China National Health Accounts for 2005 and Analysis of Essential Health Care Financing" (in Chinese), Chinese Health Economics 26, no. 4 (2007): 10-14.
5. Prior to the recent reforms, the percentage was higher; see O. O'Donnell et al., "Who Pays for Health Care in Asia?" Journal of Health Economics 27, no. 2 (2008): 460-475, which reports that in 2000, 60 percent of total health expenditures in China were paid out of patients' own pockets rather than through government subsidies or insurance.
6. Ministry of Labor and Social Security, The Statistical Report on the Development of Labor and Social Security in 2006 (in Chinese), http://www.molss.gov.cn/gb/news/2007-05/18/content_178167.htm (accessed 31 March 2008).
7. Ministry of Health, "Report on NCMS Development," Press Release (in Chinese) (Beijing: Government News, 2007)
8. and A. Wagstaff and M. Lindelow, "Health Reformin Rural China: Challenges and Options," in Public Finance in China: Reform and Growth for a Harmonious Society, ed. J. Lou and S. Wang (Washington: World Bank, 2008), 265-286.
9. Authors' calculations based on data from PRC Ministry of Health, "2007 Chinese Health Statistical Digest" (in Chinese and English), http://www.moh.gov.cn/newshtml/19165.htm (accessed 23 April 2008).
10. This figure is as of the end of March 2006. See the China Data Online home page, http://chinadataonline.org. China Data Online is produced by the China Data Center at the University of Michigan.
11. State Food and Drug Administration South Pharmaceutical Economic Institute, "The Competition of the Top 100 Pharmaceutical Industries Is Challenging" (in Chinese), Medicine Economic News, 10 August 2007.
12. B. Chen and H. Wang, "China's Pharmaceutical Industry: Competitive Features, Marketing Conditions, and Development Strategy" (in Chinese), China Pharmacy 13, no. 5 (2002): 260-262.
13. D. Jiang and J. Zhang, "The Consideration of the Development of GMP in China" (in Chinese), Chinese Pharmaceutical Management 20, no. 4 (2006): 44-47.
14. M. Santoro and C. Liu, "The Global Threat to Safety Posed by China's Pharmaceutical Industry," in Prescribing Cultures, ed. Eggleston.
15. SFDA South Pharmaceutical Economic Institute, "The Competition of the Top 100 Pharmaceutical Industries";
16. National Development and Reform Commission, "The Guideline Comments for the Eleventh Development Plan of Pharmaceutical Industries" (in Chinese), Policy Document no. 1333, 2006, http://www.sdpc.gov.cn/zcfb/zcfbtz/ tz2006/t20060904_82902.htm (accessed 7 May 2008).
17. Y. Zhang, "The Current Situation and Future of the Pharmaceutical Distribution System in China," Economic Theory and Management 3, no. 1 (2005): 34-38.
18. Y.R. Wang, "Price Competition in the Chinese Pharmaceutical Market," International Journal of Health Care Finance and Economics 6, no. 2 (2006): 119-129.
19. Y. Liang, "Drug Representatives Disclose the Rebates Related to the High Drug Prices" (in Chinese), Xi'an Medical Information 4, no. 10 (2005): 4-6.
20. Q. Wang and J. Qiu, "Discussion and Research on Medicine Price Reform in China" (in Chinese), China Pharmacy 17, no. 22 (2006): 1684-1687.
21. NDRC, "Comments on Reforming the Management of Pharmaceutical Prices" (in Chinese), Policy Document no. 961 (Beijing: NDRC, 2000);
22. and NDRC, "The Method of Government Drug Pricing" (in Chinese), Policy Document no. 2142 (Beijing: NDRC, 2000).
23. NDRC, "The Method of Government Drug Pricing";
24. NDRC, "The Advice on Further Regulating Medicine Prices and Health Care Services Prices" (in Chinese) (Beijing: NDRC, May 2006).
25. Authors' calculations based on the series of drug price policy announcements issued by the NDRC from 1997 to 2007. These data are available online (in Chinese) from the NDRC at http://www.sdpc.gov.cn; the latest announcement is available at http://www.sdpc.gov.cn/zcfb/zcfbtz/2007tongzhi/ t20070509_134097.htm (accessed 15 March 2008).
26. Q. Sun, A Survey of Medicine Prices, Availability, Affordability, and Price Components in Shandong Province, China, October 2005, http://www.haiweb.org/medicineprices/surveys/200411CN/survey_report.pdf (accessed 10 April 2008);
27. and S. Mendis et al., "The Availability and Affordability of Selected Essential Medicines for Chronic Diseases in Six Low- and Middle-Income Countries," Bulletin of the World Health Organization 85, no. 4 (2007): 279-288.
28. One detailed study using cost-accounting methods found that cost-recovery rates of official fees are very low (16 percent for hospital registration, 25 percent for hospital bed and board, 30 percent for basic surgical operations, 40 percent for general examinations and treatments), and fees were higher than costs for only 4 percent of assessed services. X. Liu et al., "The Chinese Experience of Hospital Price Regulation," Health Policy and Planning 15, no. 2 (2000): 157-163.
29. Also see Q. Meng et al., "Rationalizing the Health Care Price System: Problems, Cause, and Adjustment" (in Chinese), Chinese Health Economics 21, no. 5 (2002): 31-34;
30. and Eggleston et al., "Health Service Delivery in China."
31. Q. Meng et al., "The Impact of China's Retail Drug Price Control Policy on Hospital Expenditures: A Case Study in Two Shandong Hospitals," Health Policy and Planning 20, no. 3 (2005): 185-196.
32. NDRC and Peking University Joint Research Group, "Research on the Problem of Shortages of Inexpensive Medicines" (in Chinese), http://www.ndrc.gov.cn/zjgx/t20080408_203047.htm (accessed 23 April 2008).
33. Also see Q. Sun and Q. Meng, "Pharmaceutical Pricing Policy and Appropriate Use of Medicines in China," in Prescribing Cultures, ed. Eggleston.
34. China National Health Economics Institute, China National Health Accounts Report 2006 (in Chinese) (Beijing: Ministry of Health, 2006).
35. Chinese Pharmacy Administration Association, Changing the Mechanism of "Hospitals Supported by Drug Sales" and Guiding the Healthy Development of the Medical and Pharmaceutical Industry with a Scientific Outlook of Development (in Chinese) (Beijing: CPAA, 2006).
36. PRC Ministry of Health, "2007 Chinese Health Statistical Digest."
37. D. Du, "Difficulties for Costing Pharmaceuticals," Price Theory and Practice 3, no. 3 (2002): 10-11;
38. and Q. Wang and J. Wei, "The Causes of and Solutions to Unreasonable Drug Prices" (in Chinese), Journal of Lanzhou Commercial College 19, no. 2 (2003): 98-98.
39. NDRC and Peking University, "Research on the Problem of Shortages of Inexpensive Medicines" (in Chinese), http://www.ndrc.gov.cn/zjgx/ t20080408_203047.htm (accessed 17 April 2008).
40. L. Zhang, "Analysis of Reasons for Revenue Loss and Discussion of Counter measures for General Hospital Pharmacies" (in Chinese), Chinese Hospital Management 23, no. 9 (2003): 45-47.
41. X. Liu and A. Mills, "The Influence of Bonus Payments to Doctors on Hospital Revenue: Results of a Quasi-Experimental Study," Applied Health Economics and Health Policy 2, no. 2 (2003): 91-98;
42. and K. Eggleston et al., "Physician Payment Incentives, Cost, and Quality of Hospital Services: Evidence from Guangdong, China," China Labor Economics (forthcoming).
43. S. Zhan et al., "Drug Prescribing in Rural Health Facilities in China: Implications for Service Quality and Cost," Tropical Doctor 28, no. 1 (1998): 42-48;
44. and Eggleston et al., "Health Service Delivery in China."
45. W. Cheng, "The Analysis of the Characteristics and Defects of China's Pharmaceutical Price System" (in Chinese), Shanghai Pharmaceuticals 26, no. 12 (2005): 533-535.
46. WHO, Promoting Rational Use of Medicines: Core Components, Pub. no. WHO/EDM/2002.3 (Geneva: WHO, 2002).
47. F. Sloan and C. Hsieh, Pharmaceutical Innovation: Incentives, Competition, and Cost-Benefit Analysis in International Perspective (Cambridge: Cambridge University Press, 2007), 11.
48. Interviews with health economists advising the government; also see Premier Wen's government work report at the Eleventh National People's Congress (in Chinese), http://www.gov.cn/2008lh/content_923918.htm (accessed 17 April 2008).
49. See, for example, X. Chen and M. Watanabe, Pharmaceutical Industry in China: Intellectual Property Protection, Pricing, and Innovation (Chiba, Japan: Institute for Developing Economies, Japan External Trade Organization, 2007), 9.
50. See the chapters on those economies in Eggleston, ed., Prescribing Cultures.