Implementation of China's Zero-Mark up Drug Policy and Impact on Healthcare Markets

Abstract

This study investigates the impact of China's "Zero-mark up" drug policy on healthcare costs, employing a research methodology that includes the screening and analysis of close and return data from hospitals, pharmaceutical companies, and health insurance companies' stocks at five significant time points. The findings provide insights into the potential effects of the policy and offer recommendations for its improvement. The study contributes to cost control measures in China's medical insurance system, addressing the specialization and information asymmetry in the medical industry. The Zero-mark up drug policy aims to reduce healthcare costs, sever financial interests between medical institutions and professionals, and enhance management capabilities. By examining the implementation effects and proposing new approaches, this research provides practical implications for effective cost control in healthcare.