Drug Market with Volume Purchase(VP)

Abstract

The new round of medical and health system reform launched in China takes "drug reform" first, and is committed to breaking the mechanism of "supporting doctors with drugs" and alleviating the problem of "difficult and expensive medical treatment". For more than ten years since the implementation of centralized drug procurement, the effect of controlling medical expenses is not significant. The phenomenon of falsely high drug prices still exists, and medical expenses continue to rise. The reason is that there are some problems in centralized drug procurement, such as imperfect laws and regulations, dislocation of procurement subjects, separation of bidding and procurement, and non linkage between quantity and price. Therefore, it is imperative to reform the method of drug procurement. Based on this, this paper discusses and analyzes the impact of volume procurement on the drug market, and puts forward corresponding optimization suggestions. Through investigation and interview with relevant government departments, medical institutions, drug enterprises and their relevant personnel, this paper investigates the comparison of bid winning prices and price reduction before and after the implementation of volume procurement policy in a city, as well as the division statistics of area a and B of the second batch of volume procurement. The results show that, Compared with the previous round, the bid price of the three batches of drugs purchased in the city decreased by an average of 56%, while the average decrease of the third batch of drugs purchased in the city was only 43%, which was significantly narrowed compared with the first two batches. The highest single product decreased by 93% and the lowest by only 2%. There were great individual differences in drugs; The second batch of two districts with volume procurement in the city calculate the quantity of agreed procurement targets respectively, and the bidding drug manufacturers will conduct bidding respectively to reduce the possibility of exclusive bid winning, one dominating the market and maliciously excluding other products. The VP mode has positive significance both in theory and practice.