Does China improve social welfare after implementing the national volume-based procurement?

Objective: To explore the changes in social welfare before and after the implementation of the national volume-based procurement (NVBP). Explore whether the NVBP promotes the healthy development of manufacturers under the premise of benefiting patients. Then put forward relevant suggestions on how t...

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Main Authors: Huan Wang, Ya-Tong Huo, Qian Zhuang
Format: Article
Language:English
Published: Frontiers Media S.A. 2023-10-01
Series:Frontiers in Pharmacology
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fphar.2023.1178026/full
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author Huan Wang
Ya-Tong Huo
Qian Zhuang
author_facet Huan Wang
Ya-Tong Huo
Qian Zhuang
author_sort Huan Wang
collection DOAJ
description Objective: To explore the changes in social welfare before and after the implementation of the national volume-based procurement (NVBP). Explore whether the NVBP promotes the healthy development of manufacturers under the premise of benefiting patients. Then put forward relevant suggestions on how to effectively intervene the government in the pharmaceutical market.Methods: Starting with consumer surplus and producer surplus, social welfare was studied from the three perspectives of price, supply, and demand.Results: Consumer surplus was significantly increased, and the drug welfare of patients was significantly improved. The profits of the whole pharmaceutical industry have decreased but will increase in the future. The welfare of individual pharmaceutical enterprises varies. Overall social welfare has been significantly improved.Conclusion: The core purpose of the NVBP is to improve the medication welfare of patients, and through the increase of consumer surplus, it can affect the increase of producer surplus. Under such a linkage mechanism, the diversified linkage system of “price, demand, and supply” will achieve the effect of “1 + 1+1 > 3”.
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spelling doaj.art-c45a6b01566f494fb12fc9a9b4a6c6d22023-10-11T06:54:17ZengFrontiers Media S.A.Frontiers in Pharmacology1663-98122023-10-011410.3389/fphar.2023.11780261178026Does China improve social welfare after implementing the national volume-based procurement?Huan WangYa-Tong HuoQian ZhuangObjective: To explore the changes in social welfare before and after the implementation of the national volume-based procurement (NVBP). Explore whether the NVBP promotes the healthy development of manufacturers under the premise of benefiting patients. Then put forward relevant suggestions on how to effectively intervene the government in the pharmaceutical market.Methods: Starting with consumer surplus and producer surplus, social welfare was studied from the three perspectives of price, supply, and demand.Results: Consumer surplus was significantly increased, and the drug welfare of patients was significantly improved. The profits of the whole pharmaceutical industry have decreased but will increase in the future. The welfare of individual pharmaceutical enterprises varies. Overall social welfare has been significantly improved.Conclusion: The core purpose of the NVBP is to improve the medication welfare of patients, and through the increase of consumer surplus, it can affect the increase of producer surplus. Under such a linkage mechanism, the diversified linkage system of “price, demand, and supply” will achieve the effect of “1 + 1+1 > 3”.https://www.frontiersin.org/articles/10.3389/fphar.2023.1178026/fullChinese drug policynational volume-based procurementsocial welfareconsumer surplusproducer surplusdrug welfare
spellingShingle Huan Wang
Ya-Tong Huo
Qian Zhuang
Does China improve social welfare after implementing the national volume-based procurement?
Frontiers in Pharmacology
Chinese drug policy
national volume-based procurement
social welfare
consumer surplus
producer surplus
drug welfare
title Does China improve social welfare after implementing the national volume-based procurement?
title_full Does China improve social welfare after implementing the national volume-based procurement?
title_fullStr Does China improve social welfare after implementing the national volume-based procurement?
title_full_unstemmed Does China improve social welfare after implementing the national volume-based procurement?
title_short Does China improve social welfare after implementing the national volume-based procurement?
title_sort does china improve social welfare after implementing the national volume based procurement
topic Chinese drug policy
national volume-based procurement
social welfare
consumer surplus
producer surplus
drug welfare
url https://www.frontiersin.org/articles/10.3389/fphar.2023.1178026/full
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