IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i8p4578-d790992.html
   My bibliography  Save this article

Impacts of National Drug Price Negotiation on Expenditure, Volume, and Availability of Targeted Anti-Cancer Drugs in China: An Interrupted Time Series Analysis

Author

Listed:
  • Yan Sun

    (Department of Health Policy and Management, School of Public Health, Peking University, Beijing 100191, China)

  • Zheng Zhu

    (Department of Health Policy and Management, School of Public Health, Peking University, Beijing 100191, China)

  • Jiawei Zhang

    (Department of Health Policy and Management, School of Public Health, Peking University, Beijing 100191, China)

  • Peien Han

    (Department of Health Policy and Management, School of Public Health, Peking University, Beijing 100191, China)

  • Yu Qi

    (Department of Health Policy and Management, School of Public Health, Peking University, Beijing 100191, China)

  • Xiaoyang Wang

    (Department of Health Policy and Management, School of Public Health, Peking University, Beijing 100191, China)

  • Li Yang

    (Department of Health Policy and Management, School of Public Health, Peking University, Beijing 100191, China)

Abstract

The Chinese government has launched six rounds of national drug price negotiation since 2016 to lower the price and expand access to innovative drugs, many of which are anticancer drugs. This study aims to examine the effect of the second round of negotiation at the provincial level on the expenditure, volume, and availability of anti-cancer drugs. Procurement data at the provincial level from January 2017 to September 2018 were extracted from the China Drug Supply Information Platform (CDSIP). The volume, expenditure, and availability of three targeted anti-cancer drugs, rituximab, trastuzumab, and recombinant human endostatin (RHE), in 11 provinces that implemented the policy in September 2017 were analyzed through a controlled interrupted time series (ITS) analysis. A significant 6.0% increase ( p < 0.1) in monthly average expenditure, an increase in the volume of 99.51 DDDs (defined daily doses) ( p < 0.1), and a 0.24% ( p < 0.1) increase in availability were observed for rituximab following the implementation of the policy. The volume and availability of rituximab increased by 949.6 DDDs ( p < 0.05) and 1.56%, respectively, immediately after implementation. The availability of trastuzumab increased by 5.14% ( p < 0.01) immediately after the implementation while no instant changes in expenditure and volume were observed. A 15% ( p < 0.01) increase in monthly expenditure, 3673.17 DDDs increase in volume, and 0.66% increase in availability were observed after the inclusion of Trastuzumab. However, for RHE, only a 0.32% ( p < 0.01) increase was observed after its inclusion. Eastern and middle provinces benefited more than western provinces. National negotiation related to the drug price significantly increased the volume and expenditure of anti-cancer drugs and improved their availability. The effect of the policy might be different across different regions and across different anticancer drugs.

Suggested Citation

  • Yan Sun & Zheng Zhu & Jiawei Zhang & Peien Han & Yu Qi & Xiaoyang Wang & Li Yang, 2022. "Impacts of National Drug Price Negotiation on Expenditure, Volume, and Availability of Targeted Anti-Cancer Drugs in China: An Interrupted Time Series Analysis," IJERPH, MDPI, vol. 19(8), pages 1-10, April.
  • Handle: RePEc:gam:jijerp:v:19:y:2022:i:8:p:4578-:d:790992
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/8/4578/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/19/8/4578/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hye-Young Kwon & Brian Godman, 2017. "Drug Pricing in South Korea," Applied Health Economics and Health Policy, Springer, vol. 15(4), pages 447-453, August.
    2. Lea Toulemon, 2018. "The effect of group purchasing on prices hospitals pay for medicines," Health Economics, John Wiley & Sons, Ltd., vol. 27(9), pages 1380-1393, September.
    3. Andersen, Martin S., 2018. "Effects of Medicare coverage for the chronically ill on health insurance, utilization, and mortality: Evidence from coverage expansions affecting people with end-stage renal disease," Journal of Health Economics, Elsevier, vol. 60(C), pages 75-89.
    4. Park, Sun-Young & Han, Euna & Kim, Jini & Lee, Eui-Kyung, 2016. "Factors influencing the difference between forecasted and actual drug sales volumes under the price–volume agreement in South Korea," Health Policy, Elsevier, vol. 120(8), pages 867-874.
    5. Ariel Linden, 2015. "Conducting interrupted time-series analysis for single- and multiple-group comparisons," Stata Journal, StataCorp LP, vol. 15(2), pages 480-500, June.
    6. Sonik, R.A., 2016. "Massachusetts inpatient medicaid cost response to increased supplemental nutrition assistance program benefits," American Journal of Public Health, American Public Health Association, vol. 106(3), pages 443-448.
    7. Trevor Jozef Piatkiewicz & Janine Marie Traulsen & Tove Holm-Larsen, 2018. "Risk-Sharing Agreements in the EU: A Systematic Review of Major Trends," PharmacoEconomics - Open, Springer, vol. 2(2), pages 109-123, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. KAMKOUM, Arnaud Cedric, 2023. "The Federal Reserve’s Response to the Global Financial Crisis and its Effects: An Interrupted Time-Series Analysis of the Impact of its Quantitative Easing Programs," Thesis Commons d7pvg, Center for Open Science.
    2. Samba Diop & Simplice A. Asongu, 2022. "The impact of Covid-19 and Russia-Ukraine war on food prices in fragile countries: misfortunes never come singly," Working Papers 22/055, European Xtramile Centre of African Studies (EXCAS).
    3. Biancalani, Francesco & Gnecco, Giorgio & Riccaboni, Massimo, 2022. "Price-volume agreements: A one principal/two agents model," European Journal of Operational Research, Elsevier, vol. 300(1), pages 296-309.
    4. Díaz, Juan-José & Sánchez, Alan & Diez-Canseco, Francisco & Jaime Miranda, J. & Popkin, Barry M., 2023. "Employment and wage effects of sugar-sweetened beverage taxes and front-of-package warning label regulations on the food and beverage industry: Evidence from Peru," Food Policy, Elsevier, vol. 115(C).
    5. Meenan, Richard T. & Frank, Lawrence D. & Saelens, Brian E. & Young, Deborah R. & Kuntz, Jennifer L. & Dickerson, John F. & Wali, Behram & Keast, Erin M. & Fortmann, Stephen P., 2022. "Effects of an urban light rail line on health care utilization and cost: A pre-post assessment," Transport Policy, Elsevier, vol. 123(C), pages 112-120.
    6. Elvina Merkaj & Raffaella Santolini, 2021. "National Policies In Response To The Covid-19 Pandemic: The Case Of Friuli-Venezia-Giulia And Umbria," Working Papers 456, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    7. Alexander Karaivanov & Dongwoo Kim & Shih En Lu & Hitoshi Shigeoka, 2022. "COVID-19 vaccination mandates and vaccine uptake," Nature Human Behaviour, Nature, vol. 6(12), pages 1615-1624, December.
    8. Carlo Federici & Vivian Reckers-Droog & Oriana Ciani & Florian Dams & Bogdan Grigore & Zoltán Kaló & Sándor Kovács & Kosta Shatrov & Werner Brouwer & Michael Drummond, 2021. "Coverage with evidence development schemes for medical devices in Europe: characteristics and challenges," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(8), pages 1253-1273, November.
    9. Sutherland, Alex & Ariel, Barak & Farrar, William & De Anda, Randy, 2017. "Post-experimental follow-ups—Fade-out versus persistence effects: The Rialto police body-worn camera experiment four years on," Journal of Criminal Justice, Elsevier, vol. 53(C), pages 110-116.
    10. Fernando Antonanzas & Carmelo Juárez-Castelló & Reyes Lorente & Roberto Rodríguez-Ibeas, 2019. "The Use of Risk-Sharing Contracts in Healthcare: Theoretical and Empirical Assessments," PharmacoEconomics, Springer, vol. 37(12), pages 1469-1483, December.
    11. Christopher Ksoll & Kristine Bos & Sarah Hughes & Anthony Harris & Arif Mamun, "undated". "Evaluation Design Report for the Benin Power Compact's Electricity Generation Project and Electricity Distribution Project," Mathematica Policy Research Reports 9f8974513ee745aaac3b5c62e, Mathematica Policy Research.
    12. Han, Euna & Park, Sun-Young & Lee, Eui-Kyung, 2016. "Assessment of the Price–Volume Agreement Program in South Korea," Health Policy, Elsevier, vol. 120(10), pages 1209-1215.
    13. Fiorentini, Gianluca & Bruni, Matteo Lippi & Mammi, Irene, 2022. "The same old medicine but cheaper: The impact of patent expiry on physicians’ prescribing behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 37-68.
    14. Zhang, Dingxuan & Sun, Yuying & Duan, Hongbo & Hong, Yongmiao & Wang, Shouyang, 2023. "Speculation or currency? Multi-scale analysis of cryptocurrencies—The case of Bitcoin," International Review of Financial Analysis, Elsevier, vol. 88(C).
    15. Erica Raimondi & Loris Vergolini, 2017. "‘Everyone in School’: The Effects of Compulsory Schooling Age on Drop-out and Completion Rates," FBK-IRVAPP Working Papers 2017-05, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    16. Arnaud Cedric Kamkoum, 2023. "The Federal Reserve's Response to the Global Financial Crisis and Its Long-Term Impact: An Interrupted Time-Series Natural Experimental Analysis," Papers 2305.12318, arXiv.org.
    17. Paraje, Guillermo & Colchero, Arantxa & Wlasiuk, Juan Marcos & Sota, Antonio Martner & Popkin, Barry M., 2021. "The effects of the Chilean food policy package on aggregate employment and real wages," Food Policy, Elsevier, vol. 100(C).
    18. Lin Xie & Jiahua Liao & Haiting Chen & Xuefei Yan & Xinyan Hu, 2021. "Is Futurization the Culprit for the Violent Fluctuation in China’s Apple Spot Price?," Agriculture, MDPI, vol. 11(4), pages 1-14, April.
    19. Wang, Daniel & Vasconcelos, Natália Pires de & Poirier, Mathieu JP & Chieffi, Ana & Mônaco, Cauê & Sritharan, Lathika & Van Katwyk, Susan Rogers & Hoffman, Steven J, 2020. "Health technology assessment and judicial deference to priority-setting decisions in healthcare: Quasi-experimental analysis of right-to-health litigation in Brazil," Social Science & Medicine, Elsevier, vol. 265(C).
    20. Amarawan Pentrakan & Cheng-Chia Yang & Wing-Keung Wong, 2021. "How Well Does a Sequential Minimal Optimization Model Perform in Predicting Medicine Prices for Procurement System?," IJERPH, MDPI, vol. 18(11), pages 1-17, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:8:p:4578-:d:790992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.