China’s Current Pharmaceutical Pricing Model There Are Four Questions
The same drugs, the same drugs in the treatment of the same disease if the cure rate was equal efficiency, the price should be the same; the same drugs, the same drugs in the treatment of the same disease, when cure rates were similar efficiency, side effects, adverse reaction rates are equal that price should be the same.
Drugs is a special commodity, its uniqueness lies in the treatment of disease, not only so, the principle of equivalence is equivalent to the pricing of drugs can replace the smooth increase pricing, good quality and inexpensive drugs such as pricing principles?
Equivalent equivalent covers mainly the following two aspects: the same drugs, the same drugs in the treatment of the same disease, if the cure rate, markedly effective rate equal to that price should be the same; the same drugs, the same drugs in the treatment of the same disease , when the cure rate was similar efficiency, the side effects, adverse reaction rates are equal, that price should be the same. Refine these principles is that the same drugs, the same drugs in the treatment of the same disease, cure rates, significant differences in the efficiency of the relationship with the price difference, or the same drugs, the same drugs in the treatment of the same disease, the cure rate, markedly effective rate was similar, but side effects, adverse reaction rates and the price difference between the relationship. In addition, other effects are dependent drug pricing management factors, such as intellectual property, production costs, specifications, packaging factor, brand, etc., the impact on drug prices should be controlled to fluctuate within a certain range. Equivalent equivalent drug pricing principles and the principles of our present existence of drug pricing is essentially different.
Control drug prices in China covers the basic medical insurance drugs included in the national directory of medicines and other production and business monopoly few special drugs (including production and supply of the spirit of the national plan, anesthesia, immunization, family planning, etc. drugs). Drug prices in this part of the government to implement government pricing and management of forms of government guidance, regulations based on the average social costs, market supply and demand, social tolerance, rational design and price adjustment. In addition to the inclusion of government pricing and government guidance of the drugs, other drugs are subject to market regulation implemented by the manufacturing enterprises independently. But both the government-priced, government guidance of drugs or practice medicine subject to market regulation, the price should follow the “quality and price consistent with reasonable price” principle. In fact, the current drug pricing model several aspects of the following key issues:
First, the “average cost of community that” the lack of practical feasibility. In accordance with the “Drug Administration Law” stipulates that the average cost of drug production is in the Government’s social pricing and fundamental basis for government guidance. Meanwhile, according to the law of value, must take into account market demand and supply of drugs. The special nature of medicines, the development of drug prices, in accordance with the cost and the basis of market supply and demand, but also the people’s capability. However, on the one hand, China has implemented price control of drugs has more than 2400 kinds of species, accounting for the number of drug distribution market, 20%, 60% of sales. The face of thousands of pharmaceutical drugs produced by the 4000 pattern, not to mention the cost of volatility changes, only the pricing of the cost of information, relevant government departments can not timely and accurate collection; the other hand, the current pharmaceutical enterprises of different ownership costs of different composition, so the average cost can not be calculated.
Second, the “cost of that” lack of rationality. China’s drug price calculation of the basic approach is cost-plus method. In this method, the cost of the core, at cost plus a profit margin, and to develop sales price. Cost-plus method is the original purpose of protecting the producers of the premise of cost recovery, control of the circulation increases each time, so as to achieve the purpose of profit limit, which in theory is feasible. But the cost-plus method must be approved one by one, the production costs of specific drugs, such approval is subject to different levels of production technology, labor productivity, the effects of management vary widely, it is essential that patients with the fundamental purpose of procuring medicines to treat diseases In effect the same case, a relatively low price is the preferred species. The kinds of price control mechanisms to prevent the enterprises to improve productivity and technological progress to reduce costs because of lower costs depend on technological progress, the drugs have cut prices by law.
Third, the “competitive prices” concept limitations.
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