Abstract
The paper reviewed the history of drug price addition system and its impact on hospital management.Based on such facts, authors stated that the significance of abolishing drug price addition helped hospital management not to run their hospitals as a business, helped medical practitioners to make their clinical decisions based on medical needs, and to make the health care service deserve the professionals′ value and contributions.Following the abolishment, the hospitals need to reform their internal operating mechanisms before they can achieve better performance. Key words: Public hospital; Drug price addition; Value of health care; Operating mechanism; Performance improvement
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