Analysis of the driving force in the separation of pharmacy and medicine / 中华医院管理杂志

ABSTRACT

The paper argues that if the policy of separating pharmacy from medicine is to be implemented in China in the current situation, medical institutions will appear to be the direct interest losers while the broad masses of drug consumers (or payers) will be the eventual interest losers. In other words, consumers (or payers) will have to cover the costs entailed in separating pharmacy from medicine whereas the channels for drug circulation(wholesalers and retailers) and the drug producers will benefit from the policy. The government will be faced not only with the pressure of either raising the level of charges for medical services or increasing compensations for medical institutions, but also the dilemma of whether to stunt the development of medical institutions or to allow the abnormal growth of medical expenses. Besides, it will be confronted with moral accusations of supporting the channels for drug circulation at the expense of the interests of medical institutions and consumers and increased government input. These problems have already emerged in an embryonic form in the cunent implementation of the policy of "progressive separation of pharmacy and medicine" by the drug administration agencies. The ideal state for adopting the policy of separating pharmacy from medicine would be the overall reduction of drug prices by 26% to 30%, the turnover of the drug gross profit valued at 46.9 to 54.7 billion yuan into the scope for readjusting the level of charges for medical services, and a yearly readjustment in future of the level of charges for medical services according to the price index.