Policy Analysis On Drug Circulation Reform

Medicine is a special commodity, which related to public rights of health. The responsibility of government is to guarantee public safe and efficacy medicine with reasonable price. The high price of medicine, however, has been a critical social problem. The situation of pharmaceutical circulation is the key point. First, the "Medicine feeds doctor" system still exists and the medical institutions strangely become the major places of people's medicine consumption. This occasion is harmful to both the development of pharmaceutical circulation and the public rights of health. Second, the traditional circulation system develops slowly and is lack of efficiency. Sometimes, unorderly competitions and illegal operations happen on the market. That is "Market failure".Recently, Chinese government is positively pushing the innovation of pharmaceutical circulation, medical mechanism and medical insurance. At the same time, the measures such as the classified management of prescription drugs and OTC drugs, the control of the prices and the innovation of the circulation pattern have been taken. Through the innovations, the situation of pharmaceutical circulation has been improved but it is far from enough and needs more improvement to satisfy the public's...