Comment on: prices will let go of repeating "a mess" 
 
 
The 2014-12-09 14:37:02 
 
 
Source: China economic weekly 

    Prices will let go of repeating "a mess"?
 
    The China economic weekly "special correspondent GeFeng
 
    Enforcement has nearly 20 years of current drug pricing system was approaching fundamental change. The national development and reform commission recently to the national association of eight pharmaceutical industry from the advancing pharmaceuticals price reform scheme (draft) ", from January 1, 2015, cancel the drug pricing or government guidance price and give drug prices in the market competition.
 
    The contradiction of the change point is very clear, because the drug market in China for a long time with extraordinary phenomenon is: on the one hand, has always been drug prices artificially high people eager for problems be solved in the social life; On the other hand, many pharmaceutical companies produce a large number of similar structure, production capacity of excess, companies not only unable to grab super profits, the truth is the industry average profit margin of less than 8%, ranked second from bottom in the twelve major industry, that is to say, drug prices artificially high is not caused by market factors.
 
    This fully shows that the administrative rules and regulations are not necessarily lead to desired results, and possibly disrupt the market spontaneous instead of price error correction function, as well as the breeding ground for corruption related personnel rent-seeking, rent the soil. That is why the new collective leadership since he took office, always strive to promote decentralization, which emphasized "closely around the market in the allocation of resources plays a decisive role in deepening the reform of economic system".
 
    Drug prices artificially high, drugs, of course, the market order disorder and other issues not only because prices let go off. In fact, the current drug pricing system is causing shortcomings, it is based on the realistic background, 1992-1996, China had once tried to let go of drug prices, but soon because of soaring prices, drug prices to be incorporated into the scope of direct government control.
 
    So prices will again let go of repeating "a mess"? To answer this question must first determine the understanding of a fist, whether it can return the market decided to price, depends on whether to have a unified and open market system with orderly competition. Now, after nearly 20 years of progressive reform, China's pharmaceutical industry and YiWeiTi department have made significant progress, a health care system that connects the two mechanisms and drug centralized bid procurement is also gradually perfect. In addition, as the government to deepen understanding, to speed up the transform their functions, belonging to the government's financial security and market regulation method is clear, such as the level and degree of China's policy has been in ascension.
 
    But it is still a must be careful to treat, the problem of drug prices after let go of the retained at least include: on the one hand, medicine and medical service accompanied by itself inherent features, such as information unequal, demand extremely serious lack of flexibility, highly specialized and differences lead to local natural monopoly, etc., made in this particular field, the relationship between market and government is very hard to coordinate and coexist; Just started in our country, on the other hand, the medical and health system reform is far from complete market unity and balance, this is mainly embodied in the health system broken pieces scattered, private hospitals have nearly so, professional third party insurance institutions such as society developmental delays, etc. All in all, go for drug prices, already can see it as a successor in the early stage of the reform achievements for those routes, insufficient more need to find and improve, reversed transmission market go hand in hand with the government self-improvement and improve each other.