Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Influence of Chinese National Centralized Drug Procurement on the Price of Policy-Related Drugs: An Interrupted Time Series Analysis

Version 1 : Received: 3 April 2021 / Approved: 6 April 2021 / Online: 6 April 2021 (08:18:10 CEST)

How to cite: Wang, N.; Yang, Y.; Xu, L.; Mao, Z.; Cui, D. Influence of Chinese National Centralized Drug Procurement on the Price of Policy-Related Drugs: An Interrupted Time Series Analysis. Preprints 2021, 2021040157 (doi: 10.20944/preprints202104.0157.v1). Wang, N.; Yang, Y.; Xu, L.; Mao, Z.; Cui, D. Influence of Chinese National Centralized Drug Procurement on the Price of Policy-Related Drugs: An Interrupted Time Series Analysis. Preprints 2021, 2021040157 (doi: 10.20944/preprints202104.0157.v1).

Abstract

In 2019, Chinese government implemented the first round of National Centralized Drug Procurement (NCDP) pilot (so-called "4+7" policy) in mainland China, achieved a prominent price reduction of 52% on average for 25 bidding winning products. Under cross-price elasticity theory, the price behavior of pharmaceutical enterprises for policy-related drugs might change. This study used drug purchasing data from the Centralized Drug Procurement Survey in Shenzhen 2019, and applied single-group Interruption Time Series (ITS) design to examine the impact of "4+7" policy on the drug price index (DPI) of policy-related drugs. The ITS analysis showed that the DPI of winning (-0.183 per month, p<0.0001) and non-winning (-0.034 per month, p=0.046) products significantly decreased after the implementation of "4+7" policy. No significant difference was found for the immediate change of DPI for alternative drugs (p=0.537), while a significant decrease in change trend was detected in the post-"4+7" policy period (-0.003 per month, p=0.014). The DPI of the overall policy-related drugs significantly decreased (-0.261 per month, p<0.0001) after "4+7" policy. These findings indicate that the price behavior of pharmaceutical enterprises changed under NCDP policy, while the price linkage effect is still limited. It is necessary to further expand the scope of centralized purchased drugs and strengthen the monitoring of related drugs regarding price change and consumption structure.

Subject Areas

National Centralized Drug Procurement; "4+7" policy; drug price; interrupted time series; volume-based procurement.

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