Skip to main content
Log in

Pharmacoeconomics in Healthcare Decision Making in China

  • Current Opinion
  • Published:
Pharmaceutical Medicine Aims and scope Submit manuscript

Abstract

The use of pharmacoeconomic analyses has grown dramatically in the past decade as the cost of healthcare throughout the industrialized world has required increased scrutiny of health outcomes. Pharmacoeconomic analysis, however, has not been fully utilized in public health policy decision making in China. China is currently using a hybrid approach to regulate the healthcare market as the country moves from a planned to a market economy. There are problems in China’s current healthcare system, such as the high price and low quality of drugs, as well as inappropriate prescribing by healthcare professionals. Pharmacoeconomics is a useful tool to evaluate the cost effectiveness of drugs that can help solve some of these problems, for example through the application of a national Essential Medicines List, hospital formularies and clinical guidelines. Pharmacoeconomic methodologies have already been discussed by experts in China; however, in practice, these have not yet been used to guide decision making. Many obstacles exist. Importantly, there are only a small number of experts in the field and there are no standardized teaching materials or training courses for pharmacoeconomics in the country. In spite of these barriers, the Chinese government is actively promoting the utilization of pharmacoeconomic evaluation because of limited health resources relative to the huge healthcare market. Therefore, there exists a possibility for pharmacoeconomics to assist in rational decision making in the healthcare sector in China.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Fang J. The Chinese health care regulatory institutions in an era of transition. Soc Sci Med 2008; 66: 952–62

    Article  PubMed  Google Scholar 

  2. Hesketh T, Zhu WX. Health in China: the healthcare market. BMJ 1997; 314: 1616–8

    Article  PubMed  CAS  Google Scholar 

  3. Hesketh T. Excessive expenditure of income on treatments in developing countries [letter]. BMJ 1994; 309: 1441

    Article  PubMed  CAS  Google Scholar 

  4. Sun Q, Santoro MA, Meng Q, et al. Pharmaceutical policy in China. Health Aff (Millwood) 2008; 27: 1042–50

    Article  Google Scholar 

  5. Meng Q, Cheng G, Silver L, et al. The impact of China’s retail drug price policy on hospital expenditures: a case study in two Shandong hospitals. Health Policy Plan 2005; 20: 185–96

    Article  PubMed  Google Scholar 

  6. Chen Y, Schweitzer SO. Issues in drug pricing, reimbursement and access in China with reference to other Asia-Pacific region. Value Health 2008; 11 Suppl. 1: S124–9

    Article  PubMed  Google Scholar 

  7. Gregson N, Sparrowhawk K, Mauskopf J, et al. Pricing medicines: theory and practice, challenges and opportunities. Nat Rev Drug Discov 2005; 4: 121–30

    Article  PubMed  CAS  Google Scholar 

  8. Bootman JL, Townsend RJ, McGhan WF. Principles of pharmacoeconomics. 3rd ed. Cincinnati (OH): Harvey Whitney Books Company, 2004

    Google Scholar 

  9. Simoens S, Bruyn K, Bogaert M, et al. Pharmaceutical policy regarding generic drugs in Belgium. Pharmacoeconomics 2005; 23: 755–66

    Article  PubMed  Google Scholar 

  10. Walkom E, Robertson J, Newby D, et al. The role of pharmacoeconomics in formulary decision-making. Formulary 2006; 41: 374–86

    Google Scholar 

  11. Anis AH, Gagnon Y. Using economic evaluations tomake formulary coverage decisions: so much for guidelines. Pharmacoeconomics 2000; 18: 55–62

    Article  PubMed  CAS  Google Scholar 

  12. Drummond MF, Sculpher MJ, Torrance GW, et al. Methods for the economic evaluation of health care programmes. 3rd ed. New York: Oxford University Press, 2005

    Google Scholar 

  13. World Bank. World Development Report 1993: investing in health. New York: Oxford University Press, 1993

    Google Scholar 

  14. World Health Organization (WHO). The World Health Report 2002: reducing risks, promoting health life. France: WHO Graphics, 2002

    Google Scholar 

  15. Tyagi V, Singh SK, Sawhney A, et al. Using gross national product to calculate acceptable immunization costs: deploying cost-effectiveness calculations in reverse. Pharmacoeconomics 2003; 21: 497–9

    Article  PubMed  Google Scholar 

  16. Palmer S, Byford S, Raftery J. Economics notes: types of economic evaluation [letter]. BMJ 1999; 318: 1349

    Article  PubMed  CAS  Google Scholar 

  17. Dhanasiri S, Puliyel J. Regulating vaccines: can health economics tools be used profitably? Ind Pediatrics 2007; 44: 11–4

    Google Scholar 

  18. Yang L, Hu S. A survey of attitude on pharmacoeconomics in health delivery system. PharmacoEconomics China: technological research findings [online]. Available from URL: http://www.pe-cn.org/group/product.asp [Accessed 2008 Feb 23]

    Google Scholar 

  19. Rutten F, Drummond M. Making decisions about health technologies: a costeffectiveness perspective. York: The University of York, Centre for Health Economics, 1994 [online]. Available from URL: http://ideas.repec.org/p/chy/respap/19cheop.html#provider [Accessed 2008 Mar 15]

    Google Scholar 

  20. Yang L, Hu S, Chen W. Comparison of five methods for confidence interval estimation of cost-effectiveness ratios. Chin J Health Stat 2004; 3: 150–3

    Google Scholar 

  21. Cao Y. Application of decision analysis models in pharmacoeconomics. Chin Pharm 2007; 8: 561–4

    Google Scholar 

  22. Wu J. Methods for measurement of preference in cost-utility analysis. Chin J Pharm Econ 2008; 2: 21–6

    Google Scholar 

  23. Wu J. Multidimensional utility health status classification system. Chin J Pharm Econ 2008; 3: 42–7

    Google Scholar 

  24. Sun L, Tian X. Guiding the price fixing of drugs by pharmacoeconomic method: perfecting drug pricing method. Chin Pharm 2004; 9: 545–6

    Google Scholar 

  25. Zhou Z, Cheng X. The application of pharmacoeconomic evaluation in new Chinese traditional patent medicine pre-market evaluation. Chin Health Econ 2009; 1: 78–80

    Google Scholar 

  26. Chen W, Bi K, Yang L. Systematic review of Chinese pharmacoeconomic evaluation literature. Chin Pharm 2004; 15: 28–30

    Google Scholar 

  27. Li M, Li H, Ma A. A study on pharmacoeconomic evaluation literatures of recent years in China and abroad. Chin J Pharm Econ 2008; 1: 48–56

    Google Scholar 

  28. Wang J, Yang Y, Chen W. A survey of social mentality in China. Democracy Sci 2007; 2: 40–4

    Google Scholar 

  29. Zhang R. Pharmacoeconomics reveals scientific outlook on development. Chin J Pharm Econ 2006; 1: 59–62

    Google Scholar 

  30. Programme on the formulation of ‘Pharmacoeconomic Evaluation Guidelines in China’ co-conducted by Chinese Pharmaceutical Association and Chinese Medical Doctor Association [online]. Available from URL: http://www.pe-cn.org/project/display.asp?newsid=1833 [Accessed 2008 Oct 17]

  31. The CPC Central Committee and State Council on deepening the reform of the medical and health advice [online]. Available from URL: http://www.gov.cn/jrzg/2009-04/06/content_1278721.htm [Accessed 2009 May 7]

Download references

Acknowledgements

The authors have no conflicts of interest that are directly relevant to the content of this review. No sources of funding were used to assist in the preparation of this review.

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Li, Ht., Ma, Ax., Li, Hc. et al. Pharmacoeconomics in Healthcare Decision Making in China. Pharm Med 23, 279–282 (2009). https://doi.org/10.1007/BF03256782

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03256782

Keywords

Navigation