Local Government Drug Price Control Study

Medicine is a special merchandise for preventing and curing people's and other animals'illness. Meanwhile, it is a quasi-public goods, which has certain public characters and social characters. Price which is a reaction method of national economy is a key factor of adjustment among all economy subjects and their benefit relation. Therefore, medicine price making and guarantee takes an important part in managing the whole medicine market.Medicine price rises up so quickly these years. Although central government and local government has cut down 27 times medicine price in different forms and different ranges since 1997, and has appeared series of policies and decisions from 1996, just as " Medicine Price Management Method(temporally)"; "Suggestions about Reform of Medicine Price Management", medicine price is still unrealistically high because the essential problem isn't solved. People feel it is hard to see doctor and medicine price is too high. Consequently, medicine price connects with the healthy development of the whole medical treatment, with the benefit of people, with the stability and harmonious development of our society.The paper is divided into 5 parts. The first part is introduction, which mainly introduced the background of choosing the topic, described the famous book's concepts and the paper's research content and method. The second chapter is the concepts of the thesis and the fundamental theories, describing the forming process of medicine price, why needs government control medicine price and its theory basis. The third part gives the concept of local government management department supervision of medicine price and analyzes the relative factors of local government supervision of medicine price. The fourth chapter puts forward the main problems of local government management department supervision of medicine price and analyses the inner reasons on the basis of local research, sample analysis. The fifth chapter puts forward the suggestions of improving local government management department supervision of medicine price on the basis of analyzing the main problems and reasons, according to successful experience of developed countries. The last chapter is a conclusion of the whole paper.