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Pharmaceutical supply chain in China: Current issues and implications for health system reform

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Listed:
  • Yu, Xuan
  • Li, Cheng
  • Shi, Yuhua
  • Yu, Min

Abstract

Objective This article discusses the performance and distortions of pharmaceutical market in China and provides some reflections and policy implications for currently implemented reform.Methods This study is based on literature review and publicly available data by searching electronic databases and official web pages of the Chinese government on the internet.Results China's economic transition and the incremental and piecemeal nature of health care reform have created a pharmaceutical market with a number of deficiencies, including ineffective supervision, mark-up price pattern, distortion of the price schedule, and lack of authoritative drug formulary.Conclusions We conclude that the root cause of the market and government failures is that higher-than-cost drugs preferred by all suppliers. New drug pricing mechanism is the key to the current pharmaceutical reform and should be implemented in coordination with other health system reforms.

Suggested Citation

  • Yu, Xuan & Li, Cheng & Shi, Yuhua & Yu, Min, 2010. "Pharmaceutical supply chain in China: Current issues and implications for health system reform," Health Policy, Elsevier, vol. 97(1), pages 8-15, September.
    • Handle: RePEc:eee:hepoli:v:97:y:2010:i:1:p:8-15
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    References listed on IDEAS

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