Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policy
To implement state policies of zero-markup drug policy and medical service fee adjustment for public hospitals, this study constructed game models of the pharmaceutical supply chain, consisting of a drug supplier and a public hospital. The study obtained the optimal medical service level and pricing...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2023-10-01
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| Series: | Frontiers in Public Health |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fpubh.2023.1208994/full |
| _version_ | 1797656068411621376 |
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| author | Nan Zhou Shiyang Li Gang Zhao Chengjiang Li Chengjiang Li Na Yu |
| author_facet | Nan Zhou Shiyang Li Gang Zhao Chengjiang Li Chengjiang Li Na Yu |
| author_sort | Nan Zhou |
| collection | DOAJ |
| description | To implement state policies of zero-markup drug policy and medical service fee adjustment for public hospitals, this study constructed game models of the pharmaceutical supply chain, consisting of a drug supplier and a public hospital. The study obtained the optimal medical service level and pricing under the new state drug policies. In addition, it analyzed the impacts of the degree of public benefit of hospitals on the medical service level, the medical service price, and the drug price. Finally, from the perspective of cooperation between drug suppliers and public hospitals, the specialized coordination contract was designed to maximize overall social welfare. This study found an anomalous but meaningful conclusion: in the background of the zero-markup drug policy, a higher public benefit of hospitals could increase the drug prices, but it could reduce the medical service prices further to cut down on the overall treatment fees for the patients. The novel coordination contract can optimize the pharmaceutical supply chain and achieve a win-win situation for the drug suppliers, public hospitals, and patients. When the public benefit of hospitals is higher, the profit of a decentralized decision-making supply chain is greater than a centralized one, while the pharmaceutical supply chain will not coordinate itself. |
| first_indexed | 2024-03-11T17:23:56Z |
| format | Article |
| id | doaj.art-9c56889aab6f4d119dbf78f8d09d5e50 |
| institution | Directory Open Access Journal |
| issn | 2296-2565 |
| language | English |
| last_indexed | 2024-03-11T17:23:56Z |
| publishDate | 2023-10-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Public Health |
| spelling | doaj.art-9c56889aab6f4d119dbf78f8d09d5e502023-10-19T08:03:02ZengFrontiers Media S.A.Frontiers in Public Health2296-25652023-10-011110.3389/fpubh.2023.12089941208994Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policyNan Zhou0Shiyang Li1Gang Zhao2Chengjiang Li3Chengjiang Li4Na Yu5College of Finance and Economics, Yangtze Normal University, Chongqing, ChinaCollege of Modern Postal, Chongqing University of Posts and Telecommunications, Chongqing, ChinaSchool of Engineering, University of Tasmania, Hobart, TAS, AustraliaSchool of Engineering, University of Tasmania, Hobart, TAS, AustraliaSchool of Management, Guizhou University, Guiyang, ChinaShandong Provincial Hospital, Jinan, ChinaTo implement state policies of zero-markup drug policy and medical service fee adjustment for public hospitals, this study constructed game models of the pharmaceutical supply chain, consisting of a drug supplier and a public hospital. The study obtained the optimal medical service level and pricing under the new state drug policies. In addition, it analyzed the impacts of the degree of public benefit of hospitals on the medical service level, the medical service price, and the drug price. Finally, from the perspective of cooperation between drug suppliers and public hospitals, the specialized coordination contract was designed to maximize overall social welfare. This study found an anomalous but meaningful conclusion: in the background of the zero-markup drug policy, a higher public benefit of hospitals could increase the drug prices, but it could reduce the medical service prices further to cut down on the overall treatment fees for the patients. The novel coordination contract can optimize the pharmaceutical supply chain and achieve a win-win situation for the drug suppliers, public hospitals, and patients. When the public benefit of hospitals is higher, the profit of a decentralized decision-making supply chain is greater than a centralized one, while the pharmaceutical supply chain will not coordinate itself.https://www.frontiersin.org/articles/10.3389/fpubh.2023.1208994/fullpharmaceutical supply chainmedical service pricingpublic benefit of hospitalcoordination contractssupply chain management |
| spellingShingle | Nan Zhou Shiyang Li Gang Zhao Chengjiang Li Chengjiang Li Na Yu Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policy Frontiers in Public Health pharmaceutical supply chain medical service pricing public benefit of hospital coordination contracts supply chain management |
| title | Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policy |
| title_full | Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policy |
| title_fullStr | Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policy |
| title_full_unstemmed | Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policy |
| title_short | Medical service pricing and pharmaceutical supply chain coordination contracts under the zero-markup drug policy |
| title_sort | medical service pricing and pharmaceutical supply chain coordination contracts under the zero markup drug policy |
| topic | pharmaceutical supply chain medical service pricing public benefit of hospital coordination contracts supply chain management |
| url | https://www.frontiersin.org/articles/10.3389/fpubh.2023.1208994/full |
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