Research On The Effect Of Centralized Drug Procurement Policy On Circulation Industry And Burden Of Drug Costs

High drug prices imposing heavy financial burdens have always existed in China.The reason for this is that,on the one hand,the pharmaceutical distribution industry has the complex hierarchy,insufficient regulation and backward profit model;on the other hand,it is due to the "compensation system for the medical cost through drug-selling profits" based on China’s national conditions in the 1950s.It indeed made up for the shortage of government’s investment in medical institutions and the low price of medical services,but nowadays,this business model has seriously hindered the process of medical reform as well as national medical security.Drug procurement reform,as a key grip to integrate the pharmaceutical distribution industry and reduce the cost of medicine,also plays an important role in the reform of medical insurance.After years of development,the way of drug procurement has gradually changed from decentralized procurement to centralized procurement,and the main body of purchasing has been expanded from individual hospitals to hospitals across the province.In 201 8,the Chinese government carried out the centralized drug procurement for the first time,marking that the centralized drug procurement has become national wide.As the drug procurement reform continues to advance,centralized procurement has achieved remarkable results in the control of drug unit price.In the meantime,the whole reform process has had a non-negligible impact on drug distribution enterprises,greatly accelerating the integration and changing the landscape of the overall pharmaceutical distribution industry.Starting from the centralized procurement policy,this paper briefly introduces the centralized procurement methods of drugs at home and abroad,and reviews the development and current form of centralized drug procurement in China.Ten it analyzes the impact of relevant policies on the pharmaceutical circulation industry,as well as the effect on releasing the pharmaceutical burden throughout the country.The whole pharmaceutical distribution industry is in its "shift period",and its overall growth rate is slowing down.However,as for the segments of pharmaceutical retail and e-commerce,due to the margin compression of original wholesalers,as well as the hospitals’ willingness of"prescription outflow",their demand is gradually released,and their growth exceeds the overall level of the industry.Since the implementation of the centralized procurement policy,it has been gradually improved,and the drug prices have been significantly reduced.Nevertheless,it is still in its popularization stage.The drug quality needs improvement and the drug evaluation system of diagnosis and treatment and rational use is not yet complete,etc.Therefore,China’s medical burden has not been significantly reduced.