This study examines how the dynamic interaction of institutions, interests and ideas has shaped the drug price control policy in China over time. It argues that since the 1980s, the common interests of drug manufacturers, drug wholesalers, hospitals and doctors to seek profits have driven them to collude together, thereby making the drug price control policy ineffective. In order to stop collusion between these parties and reduce drug prices, this study suggests that the government should implement drug price control policy in coordination with other health care reforms. Health care reforms include implementing the zero-markup policy for drugs at hospitals, improving the remuneration system of doctors, improving the transparency and openness of centralized drug procurement system, cracking down on commercial bribery and rooting out malpractice in the pharmaceutical industry and hospitals. This study provides the most updated information about high drug prices and drug price control policy in China.
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