Research On Medicine Price Regulation Under The View Of Polycentric Governance Theory

CCTV broadcasts a piece of news about the astonishing profit of a kind of drug which is used to cure the cancer. The cost of the medicine is 15.5 RMB, but the selling price is 213 RMB, the profit is 1300%. This extravagant data arouses public attention on the drug price. Being the necessity, people always pay much attention on it. According to the rules, many goods are based on the market competition, but the drug is an exception. Firstly, the drug is closely with people's life, it's the essential part to save one's life. Secondly, whatever you are, the drug is vital for you when are ill. At last, the drug is prescribed by doctors, so the drug price is connected to the hospital. Above all, nowadays the drug is the focus of people's taking on, the government must monitor the drug price rigorously. During the meeting of NPC and CPPCC, the drug price also is the most popular issue proposed by deputy to the People's Congress, PM Wen emphasizes the importance of the people's livelihoods in the government working report, he said the drug price was the key of the people's livelihood. Therefore, how to keep the rational drug price is the crucial part of the government administrative work.In the early 1990s, as the medical industry developed, supply exceeds demand in the drug market immediately. The drug price and trend are not consistent with the market principle, but a series of uncommon incident-jump quickly. The government bureau has been taking measures to cope with this situation up to 22 times, and even making some constitutional disciples. The result is dissatisfied. This phenomenon shows there are market failures and government failures in the drug market mechanism.At the beginning of the situation of false increase of drug price, combined with the case study method and empirical analysis method to analysis the main reasons of case. Our context make an analysis on how the government control the false increase of drug price and takes advantage of some controlling theories and points out that we should be on the basis of drug price and make the government monitoring systems and the third party involved, which can make Chinese drug price normally and thus, we have the enough capacity to afford the fees.