Pharmaceutical supply chain in China: Current issues and implications for health system reform

Yu, Xuan; Li, Cheng; Shi, Yanlin; Yu, Min

doi:10.1016/j.healthpol.2010.02.010

Cited by 146 publications

(117 citation statements)

References 22 publications

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“…These measures have principally been aimed at trying to control pharmaceutical expenditure in hospitals, because more than 80% of total pharmaceutical consumption in China is currently occurring in hospitals (29,35,37,42). For state-priced products, the National Development and Reform Commission (NDRC) sets maximum retail prices (price cap) including mark-ups; for province-or municipality-priced products, the price management department determines the retail prices.…”

Section: Introductionmentioning

confidence: 99%

“…For state-priced products, the National Development and Reform Commission (NDRC) sets maximum retail prices (price cap) including mark-ups; for province-or municipality-priced products, the price management department determines the retail prices. For other products, retail prices are determined by the manufacturers (29,35,42,43). For instance, the NDRC has implemented 28 price adjustments between 1997 and 2011 to address high prices for common or expensive medicines such as cardiovascular drugs or anticancer drugs (29,44).…”

Section: Introductionmentioning

confidence: 99%

“…However, there are no formal pricing policies for generics in China unlike the policies introduced across Europe, which have resulted in lower price (2,4,12,16,10,18,21,45). This lack of policies is at least partially responsible for the fact that there are more than 5,000 pharmaceutical manufacturers in China producing mainly generics (29,33,42). It is expected, but not yet proven, that greater transparency in pharmaceutical pricing may lead to further price reductions (35).…”

Section: Introductionmentioning

confidence: 99%

“…This situation is exacerbated by the low salaries currently paid to physicians in China; with many physicians earning 5000 CNY (US$ 780) a month or less (50,51). This has resulted in considerable irrational prescribing despite the introduction of measures to decrease this such as essential medicine lists (29,31,33,42,43). An example of irrational prescribing is the continued inappropriate use of injectable drugs including injectable traditional Chinese medicines as well as considerable over prescribing of antibiotics including, as mentioned, the use of expensive versus less expensive antibiotic alternatives (31,32,49,52,53).…”

Section: Introductionmentioning

confidence: 99%

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Ongoing initiatives to improve prescribing efficiency in China; statins as a case history

Zhang

Godman

et al. 2014

GaBI J

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Introduction: Pharmaceutical expenditure rose by 16% per annum in China during the past decade, and now represents 46% of total health care expenditure. Initiatives to moderate growth include pricing regulations for pharmaceuticals and encouraging INN prescribing. However, there is limited monitoring of physician prescribing and current incentives encourage hospitals and physicians to profit from drug procurement. Objective: Assess changes in statin utilisation and expenditure as additional generics are launched. Subsequently, compare results in China with findings among European countries to provide future guidance. Methods: Observational retrospective study of statin utilisation and procurement expenditure from 2004 to 2013 in two large teaching hospital groups. Results: Statin utilisation rose 32 fold in one hospital group and 54 fold in the other. Expenditure also increased but to a lesser extent, i.e. from just over CNY 0.65 million in 2004 to 15.3 million in 2013 in one hospital group and from CNY 0.49 to 19.3 million in the other. Atorvastatin (originator) was the most utilised statin. Utilisation of each generic statin was typically low, e.g. 10% in 2013 in one hospital group. Procurement prices fell over time, greatest for generic simvastatin (-74 to -91%) mirroring data from European countries. However, no increase in their prescribing was observed. In fact, a significant decrease in generic prescribing was seen in one hospital group between 2004 and 2013. Conclusion: There are considerable opportunities to improve prescribing efficiency in China based on European experience. However, current incentives encouraging hospitals and physicians to profit from drug procurement need to be addressed.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Ongoing initiatives to improve prescribing efficiency in China; statins as a case history

Zhang

Godman

et al. 2014

GaBI J

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“…As one of the emerging economics, China's pharmaceutical sector is in a significant position in the period of rapid growth of industrialization and urbanization [11]. The pharmaceutical industry in China is largely influenced by government and regulatory institutions in both structure shaping and network building [12] [13].…”

Section: Introductionmentioning

confidence: 99%

Drivers and Patterns of Supply Chain Collaboration in the Pharmaceutical Industry: A Case Study on SMEs in China

Huang¹,

Lin²,

Ieromonachou³

et al. 2015

JSS

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The objectives of this paper are to identify the supply chain collaboration models/patterns and its correspondent advantages on pharmaceutical supply chain. This paper aims to investigate how collaborative activities can impact on the development of supply chain and industry. A case study methodology was adopted in this research, which involved pharmaceutical SMEs. The results indicate that collaborations are common in all phases of pharmaceutical supply chain; the different strength of barging power among collaborative partners will impact the advantages achieved at strategic, operational and political levels.

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Comparison of drug utilization across different prescribers and different health care settings

MacBride‐Stewart,

Zagorodnikova,

Langner

2024

Drug Utilization Research

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Pharmaceutical supply chain in China: Current issues and implications for health system reform

Cited by 146 publications

References 22 publications

Ongoing initiatives to improve prescribing efficiency in China; statins as a case history

Ongoing initiatives to improve prescribing efficiency in China; statins as a case history

Drivers and Patterns of Supply Chain Collaboration in the Pharmaceutical Industry: A Case Study on SMEs in China

Comparison of drug utilization across different prescribers and different health care settings

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