Topic:Geographic Variation and Outcomes of the Centralized Volume-based Procurement and the Explanatory Factors

Abstract:

China has implemented the centralized volume-basedprocurement of pharmaceutical drugs since late 2018.One of the key innovations is the guaranteed volume (as a share of projected demand by each province) for pharmaceutical firms,which can incentivize firms to lower prices to gain a larger volume,in this study,we first examine the degree of fulfillment of the granted volume and the associated changes inprice,revenue,and quality.We observe considerable variation at the provincial level and among suppliers based on firm size.On the demandside,adopting reference pricing for non-winning drugs and increasing coinsurance rates for alt drugs both play significant roles.Onthe supplyside,while most firms experience a revenue loss after volume-based procurement,larger firms tend to lose less than smallerfirms.Furthermore,the institutional setting also influences outcomes;provinces with a higher number of medical legal cases tend to execute volume based procurement poorly.

Introduction of theLecturer:

XuanZhangstudied economics at Renmin University of China from 2009 to 2013 and received her bachelor's degree in economics.From 2013 to 2019,she studied at Brown University in the United States and received her master's degree and Doctor's degree ineconomics.Now,she is an Assistant Professor at Singapore Management University.Her research interests include health economics,labour economics and public economics,published in American Economic Review,Journal of PublicEconomics,Journal of Development Economics,etc.

Time:December27,2023 14:00-16:00

Venue: B423,ZhixinBuilding,CentralCampus