An Optimization Study On The Mechanism Formation And Management System Of Chinese Medicine Price Based On The Hedonic Price Model

The heavy burden of national medical cost caused by the high medicine prices is a common problem faced by the world today. In China, a large number of medicine prices are directly managed by the government, therefore, China sets up medicine prices on the basis of social average cost and average market price, which works effectively on reducing medicine prices that are artificially high and easing the burden of people. However, it is still inadequate in market-oriented functioning, promoting the system reform, controlling improper rivalship, encouraging technological innovation, and so on.Based on the pharmaceutical theoretical study and demonstration analysis including medicine, drug market, price policy system, this paper makes an effort in summarizing current domestic problems of the contradictions between management policy design of medicine price and the reality of the market, then correspondingly proposing appropriate solutions. With the medicine price data supplement and support of medical insurance divisions of national and some provinces, making statistical analysis to more than 200,000 data of effective bidding price, actual production cost, and international market information, this paper evaluates the current medicine price level, government pricing implementation status in a comparatively impartial and objective method to seize prominent price contradiction. In addition, this paper utilizes Hedonic price model to carry out the regression analysis of factors affecting medicine prices, make quantized research on the influence of individual and multiple parameters on medicine price, common price trend, and regularities of price changes. Last but not the least, with the mainstream of international medicine price management, this paper makes comparative study, and proposes specific ideas and measures for improving the management of domestic medicine prices.The innovation of this paper mainly lies in two aspects as follow. One is at the first time carrying the more targeted and practical classified research according to the price range distribution and quality arrangements rather than the domestic commonly used average value research on medical production costs, distribution costs, marketing features to make differentiation policy. The second is employing the Hedonic model for quantitative study of medical price on feature parameters, functioning mechanism and effects, the external environmental influence, although Hedonic model is rarely used domestically. Furthermore, this paper takes full assessment on medical price policy and implementation effect of tender policy through multiple points like medicine production cost, difference marketing price rate, dosage form, packing, marketing strategy instead of price comparison commonly used in academic circle. At the same time, the study on all government pricing pills patents, international and domestic prices of original research drugs, market delivery dates, and price margin of the same category dosage form expands the scope and range of domestic research on such issues.In terms of practical guidance, this paper calls for lifting control over most medicine pricing, and realizing market competition oriented pricing mechanism through strengthening the sector linkage like medical science, drug bidding, medical insurance, while building pricing mechanism of interacting between consumers, payers and supervisors, which are perspective and feasible. The proposal of improving pricing rules, of specific ideas on modifying pricing procedures, standardizing cost structure, reducing intermediate links, keeping reasonable price parity relationship plays a positive role in curbing overgrowth of pills prices, unburdening consumer charges, and advancing rational use of drugs. It should be pointed out that the study and analysis of this paper fully considers the position of market competition, and takes insufficient account of the implicit factors like consumer psychology, financial affordability in establishing pricing mode, which should be further improved.