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Exploring the Mechanism of Drug Price Formation in the New Era

In this lecture, professor Wang mainly introduced the current situation of drug price formation in China, discussed the mechanism of drug price formation in the new era, and put forward his own ideas from the aspects of management system and market mechanism.

Firstly, professor Wang introduced the background knowledge of drug pricing. Drugs have three attributes: natural, commercial and social, which determines that the price formation mechanism of drugs is different from that of general commodities. Meanwhile, due to the dual supply and demand relationship between drugs in China (hospitals and pharmaceutical factories, patients and hospitals), the value and price of drugs in China have deviated for a long time.

Then, professor Wang explained the domestic practice and international experience of drug pricing. He divided China's drug price reform into four stages. Before 1996, it was the stage before rectification; from 1996 to 2000, it was the initial stage; from 2001 to 2015, it was the progressive stage; and from 2015, it was the basic opening stage. Over the past 20 years, in order to improve the drug price chaos, China has successively introduced and improved the price law, the drug government pricing method, the drug administration law, the notice on the issuance of opinions on promoting drug price reform and the anti-monopoly law, and achieved certain results. According to international experience, drug pricing in the United States is completely market-oriented, while in Australia and other countries, it is completely government pricing. Both of them are difficult to implement in China, while the British government sets standards and the free market regulation system is more in line with China's national conditions and current situation.

Finally, professor Wang put forward his own ideas and Suggestions on the formation mechanism of drug price in the new era based on his years of experience. He put forward that: under the new era, China's drug price formation mechanism needs to be further deepened and reformed, and it is an important proposition of The Times to study and explore the drug price formation mechanism corresponding to the stage of socialist economic development. We should adhere to market decisions and gradually liberalize prices. We will continue to exercise regulation in accordance with the law and retain means to correct deviations. Promoting mechanism innovation and formulating payment standards; Ensure fund security and optimize resource allocation. We will carry out reform in the following six areas: mechanism of discovery, synergy, incentive, constraint, competition and check and balance, and strive to improve the market, policy and legal environment, so as to truly form a price mechanism that meets the needs of the people.

Professor Wang’s lecture use his own practical experience to guide students to do more thinking, more contact with themselves in the future work and study. Price formation mechanism is also important research direction in the field of financial, hope the classmates together for the new era of drug pricing mechanism contribute their ideas. During the whole lecture, Professor Wang and the students had a warm interaction, the lecture was thought-provoking, the atmosphere was very active, the students expressed a lot of benefit, and finally the lecture was completed.