Application Of Hedonic Price Index In Drug Price Analysis

The price of medicines has always been a hot topic of concern for industry,society and regulatory authorities,and it is also the focus of discussion in health care reform.Much high price of medicines will reduce the availability of medicines to people,while too low price of medicines will hinder the development of new medicines,which will result in the impact on the availability of effective medicines to people in the future.The impact of price factors on the availability of medicines has always been a major problem for China,therefore,how to find and intervene in factors that affect the price of medicines becomes even more significant.In the study of medicines prices,the price index provides a method for measuring the price level of medicines,which is an important indicator reflecting the fluctuation of medicine prices,playing an crucial role in the economic analysis.This paper studies and compiles the Hedonic price index of medicines,which can link the characteristics and prices of medicines,and then conduct a more in-depth study on the changing rules in the price of medicines.Research objective:According to the principle and method of Hedonic price index,this paper has compiled the Hedonic price index of medicines,and monitored the trend of medicine price index,revealing the main factors affecting the price of medicines,which has provided decision support for the study of factors affecting the price of medicines and the monitoring of the changing trend of the medicine prices.Research methods:1)Method of literature researches: the paper has retrieved the database of pubmed,VIP,CNKI and Wanfang and collected reports on the researches on the medicine index and the price characteristic variables of medicines;2)Method of expert consultation: the paper has conducted an evaluation to the importance of medicine price characteristics and the feasibility of data collection by designing expert questionnaires;3)Method of screening based on the main information content indicators: the method has been used to analyze the results of expert consultation and to screen the variables of medicine price characteristics,which is conducive to the construction of a system of medicine price characteristics indicators;4)Method of Hedonic price index model: by collecting data on the clinical application of medicines in medical institutions and the data on the medicine price characteristics of the Internet bidding platform,this paper has constructed the Hedonic price index model by taking antibacterial medicines as an example,conducting an analysis of and research on the model;5)Method of comparative research: this paper has separately compiled and compared the Hedonic price index and the Laspeyres price index.Research results:1.This paper has established a index system of medicine price characteristic consisting of 6 first-level indicators and 14 second-level indicators.Among them,the first-level indicators of medicine effectiveness include medicine treatment and biological availability;the first-level indicators of medicine safety include the ranking of the incidence of serious adverse reactions in similar medicines;the first-level indicators of medicine convenience include the frequency of medicine use and packaging specifications;the first-level indicators of medicine economy include the medicine price,the cost of defined daily dose,the highest price,the lowest price,the price of original medicine,the price paid by medical insurance;the first-level indicators of medicine policy include whether it is a medicine within the scope of medical insurance;the first-level indicators for medicine substitution include the time to market for patented medicines,the period of patent invalidation,and the number of people owing medicine approval numbers.2.This paper has established a Hedonic price index model for antimicrobial medicines.Taking antibacterial medicine data as an example,this paper first establishes the Hedonic price model.By analyzing the regression results,the following conclusions are drawn: there is a positive relationship between the content of active ingredients,the number of defined daily dose,the cost of defined daily dose,the highest price,the lowest price and the price of the medicine;on the other hand,there is a negative relationship between whether it is oral medicine,the number of manufacturers of the same medicine,whether it is a medicine within the scope of medical insurance,whether it is a domestic medicine,the number of people using the medicine and the price of the medicine.Secondly,this paper has compiled the Hedonic price index on a monthly basis.From the trend of the price index,it can be seen that except for February 2015,the price index of other months is less than 1,that is to say,the overall price of medicines is declining.Among them,the decline in medicines before August 2015 is small,and the decline after August 2015 increases significantly.The biggest decline is in September 2015.At the same time,the state has issued three consecutive policies on the price and use of medicines during this period,which also shows that national policies have a substantial impact on medicine prices.3.This paper has compared the Hedonic price index,the Laspeyres price index.From the perspective of data utilization,if the medicine with the same international non-property name(INN)drug is used as the same item,the Laspeyres price index can only calculate 84% of the medicine,and the Hedonic price index can calculate 100% of the medicine;if the medicine with the same INN,specifications,doses,pharmaceuticals is used as the same item,the Laspeyres price index can only research 61% of the medicine,and the Hedonic price index can research 99% of the medicine;therefore,the Hedonic price index can better track existing medicines on the market.From the perspective of the index results,both the Laspeyres price index and the Hedonic price index are declining,However,the Laspeyres price index has large fluctuations in February 2015 and February 2016,the result of which is difficult to explain;while the change of the Hedonic price index in August 2015 is more in line with the changes in the medicine policy issued by the government,which can be reasonably explained.The research conclusionThis paper has studied and constructed a system of medicine price characteristics indicators,which has certain reference for the construction of Hedonic models in the future;this paper has studied and constructed the Hedonic price index of antibacterial medicines.By comparing with the classic Laspeyres price index,the Hedonic price index is more suitable for the analysis of medicine varieties in the whole market,which can better reflect the price fluctuation of the medicine market;through the regression coefficient,this paper has analyzed the variables affecting the price characteristics of medicines;the research in this paper belongs to the basic theoretical research,which provides a preliminary reference and theoretical basis for the future application of Hedonic price index in the field of medicine.