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The Study of Medical Consumable’s Price Regulation

Author: ZhangYun
Tutor: ZhuQiGui
School: Shanghai Jiaotong University
Course: Public Administration
Keywords: medical consumable price regulation price formation mechanism
CLC: R197.3
Type: Master's thesis
Year: 2011
Downloads: 138
Quote: 0
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Abstract

As the growth of medical expenditure and the proportion of expenditure on medical consumable to expenditure medical care, much attention has been draw to the price and use of medical consumables. In addition to the development of medical technology and the change of disease spectrum of human beings, the overwhelmingly high price and clinical overuse of medical consumable, which caused by the imperfect system of medical consumable’s price regulation, has become major obstacles to the development of the market of medical consumable.Based on the background mentioned above, this dissertation analyzes the subject of medical consumable’s price regulation.As a supporting product in medical care, medical consumable belongs to quasi-Public Product. At the same time, medical consumable has its specific Properties, such as: there are asymmetric information between market participants. Induced demand is a common phenomenon. There are not effective mutual restraint between the suppliers and the demanders. Medical expenditure are mainly paid by the third party. There is serious market failure in medical consumable market and government regulation is particularly important.From the point view of price formation mechanism of medical consumable, the cost of market access and price approval are main part of medical consumable’s hole cost. Many market accesses are set repeatedly, which intensify the growth of medical consumable’s expenditure. The system of medical consumable’s price regulation is urgent to be perfect. Additionally, fee-for-service, the single mean of medical expenditure payment, makes the supplier no constraints. On the contrary, medical consumable’s supplier will choose medical consumable with higher price and use medical consumable too much because of economic incentives. The necessary means to change this phenomenon is to adopt different means of payment.This dissertation analyzes the situation and problems of medical consumable’s price regulation. Relevant government departments are taking measures to control the expenditure of medical consumable, such as centralized bidding and maximum retail price etc. But these measures do not give evident effect to the price of medical consumable. The overwhelmingly high price and clinical overuse of medical consumable still exist commonly. The interests’relationship between the supplier and the demander are not changed and the market failure can not be corrected effectively.Finally, combining with the situation and problems of medical consumable’s price regulation, this dissertation proposes some specific measures for medical consumable’s price regulation. Medical consumable’s price regulation can not just be administrative intervention and price limit. The government must be good at using the power of market, trying to adjust the pattern of interests between the supplier and the demander, improving the price formation mechanism of medical consumable, establishing correct economic incentives, taking different means of medical expenditure payment, trying hard to improve efficiency and saving medical resources. Only in this way, the system of medical consumable’s price regulation can be more perfect, the market failure can be corrected effectively. The overwhelmingly high price and clinical overuse of medical consumable will be avoided.

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