IDEAS home Printed from https://ideas.repec.org/a/bla/ijhplm/v36y2021i5p1653-1665.html
   My bibliography  Save this article

Does price deregulation increase drug price in China? An interrupted time series analysis

Author

Listed:
  • Yao Xiong
  • Judy Xu
  • Yuexia Gao

Abstract

Background The Chinese government removed the price ceiling of most drugs in June 2015 to establish a market‐driven pricing system. The purpose of this study is to examine the impact of the elimination of drug ceiling price (EDCP) policy on drug prices. Methods Using a national macro‐level dataset, we employed an interrupted time series method to study the abrupt level and gradual trend changes of Chinese and Western medicine consumer price index (CPI) between June 2014 and June 2017. Results The policy exerted level change on Chinese medicine CPI, increasing 0.201% (95% CI 0.026% to 0.376%, p = 0.026). And the trend in Chinese medicine CPI was still decreased nonsignificantly after the EDCP policy. However, there was no significant price change in Western medicine. Conclusion The EDCP policy has different effects on the prices of Chinese and Western medicines. Therefore, we need to pay more attention to the drug pricing mechanism in the future.

Suggested Citation

  • Yao Xiong & Judy Xu & Yuexia Gao, 2021. "Does price deregulation increase drug price in China? An interrupted time series analysis," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(5), pages 1653-1665, September.
    • Handle: RePEc:bla:ijhplm:v:36:y:2021:i:5:p:1653-1665
    DOI: 10.1002/hpm.3244
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hpm.3244
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hpm.3244?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xu, Judy & Yang, Yue, 2009. "Traditional Chinese medicine in the Chinese health care system," Health Policy, Elsevier, vol. 90(2-3), pages 133-139, May.
    2. Hanna Koskinen & Elina Ahola & Leena Saastamoinen & Hennamari Mikkola & Jaana Martikainen, 2014. "The impact of reference pricing and extension of generic substitution on the daily cost of antipsychotic medication in Finland," Health Economics Review, Springer, vol. 4(1), pages 1-10, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pu‐yan Nie & Hong‐xing Wen & Chan Wang, 2023. "Price cap regulation under duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1376-1382, April.

    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. Sabine Vogler, 2019. "Fair prices for medicines? Exploring competent authorities’ and public payers’ preferences on pharmaceutical policies," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(3), pages 443-469, August.
    2. Xiaoshan Rong & Youqing Peng & Hai‐Ping Yu & Dan Li, 2017. "Cultural factors influencing dietary and fluid restriction behaviour: perceptions of older Chinese patients with heart failure," Journal of Clinical Nursing, John Wiley & Sons, vol. 26(5-6), pages 717-726, March.
    3. Boyang Zheng & Guiping Sun & Hourong Wang, 2019. "Evaluation Tool for Traditional Chinese Medicine Students in China: A Competency Perspective," SAGE Open, , vol. 9(3), pages 21582440198, July.
    4. Sabine Vogler & Guillaume Dedet & Hanne Bak Pedersen, 2019. "Financial Burden of Prescribed Medicines Included in Outpatient Benefits Package Schemes: Comparative Analysis of Co-Payments for Reimbursable Medicines in European Countries," Applied Health Economics and Health Policy, Springer, vol. 17(6), pages 803-816, December.
    5. Radhika Lal & Waldemiro Francisco Sorte Junior, 2011. "Where Biodiversity, Traditional Knowledge, Health and Livelihoods Meet: Institutional Pillars for The Productive Inclusion of Local Communities (Brazil Case Study)," Working Papers 81, International Policy Centre for Inclusive Growth.
    6. Geng, Difei & Saggi, Kamal, 2020. "Optimal price regulations in international pharmaceutical markets with generic competition," Journal of Health Economics, Elsevier, vol. 71(C).
    7. Chang, Shun-Chiao & Lin, Chi-Feng & Yeh, Ta-Chun & Chang, Chun-Wei, 2019. "Determinants of the performance of traditional Chinese medicine clinics in Taiwan," Health Policy, Elsevier, vol. 123(4), pages 379-387.
    8. Chung, Vincent C.H. & Hillier, Sheila & Lau, Chun Hong & Wong, Samuel Y.S. & Yeoh, Eng Kiong & Griffiths, Sian M., 2011. "Referral to and attitude towards traditional Chinese medicine amongst western medical doctors in postcolonial Hong Kong," Social Science & Medicine, Elsevier, vol. 72(2), pages 247-255, January.
    9. Zi-Yi Guo, 2017. "Health Insurance and the Demand for Medical Care: a Case Study from China," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(1), pages 8-13.
    10. Zi-Yi Guo, 2017. "Health Insurance and the Demand for Medical Care: a Case Study from China," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(1), pages 8-13.

    More about this item

    Statistics

    Access and download statistics

    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:bla:ijhplm:v:36:y:2021:i:5:p:1653-1665. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0749-6753 .

    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.