Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series study

Background In October 2012, the Chinese government established maximum retail prices for specific products, including 30 antineoplastic medications. Three years later, in June 2015, the government abolished price regulation for most medications, including all antineoplastic medications. This study e...

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Main Authors: Xiaodong Guan, Luwen Shi, Haishaerjiang Wushouer, Mingchun Yang, Sheng Han, Dennis Ross-Degnan, Anita Katharina Wagner
Format: Article
Language:English
Published: BMJ Publishing Group 2019-11-01
Series:BMJ Open
Online Access:https://bmjopen.bmj.com/content/9/11/e031658.full
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author Xiaodong Guan
Luwen Shi
Haishaerjiang Wushouer
Mingchun Yang
Sheng Han
Dennis Ross-Degnan
Anita Katharina Wagner
author_facet Xiaodong Guan
Luwen Shi
Haishaerjiang Wushouer
Mingchun Yang
Sheng Han
Dennis Ross-Degnan
Anita Katharina Wagner
author_sort Xiaodong Guan
collection DOAJ
description Background In October 2012, the Chinese government established maximum retail prices for specific products, including 30 antineoplastic medications. Three years later, in June 2015, the government abolished price regulation for most medications, including all antineoplastic medications. This study examined the impacts of regulation and subsequent deregulation of prices of antineoplastic medications in China.Methods Using hospital procurement data and an interrupted time series with comparison series design, we examined the impacts of the policy changes on relative purchase prices (Laspeyres price index) and volumes of and spending on 52 antineoplastic medications in 699 hospitals. We identified three policy periods: prior to the initial price regulation (October 2011 to September 2012); during price regulation (October 2012 to June 2015); and after price deregulation (July 2015 to June 2016).Results During government price regulation, compared with price-unregulated cancer medications (n=22, mostly newer targeted products), the relative price of price-regulated medications (n=30, mostly chemotherapeutic products) decreased significantly (β=−0.081, p<0.001). After the government price deregulation, no significant price change occurred. Neither government price regulation nor deregulation had a significant impact on average volumes of or average spending on all antineoplastic medications immediately after the policy changes or in the longer term (p>0.05).Conclusion Compared with unregulated antineoplastics, the prices of regulated antineoplastic medications decreased after setting price caps and did not increase after deregulation. To control the rapid growth of oncology medication expenditures, more effective measures than price regulation through price caps for traditional chemotherapy are needed.
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spelling doaj-art-6dd956f7039041f7aa2b212a69ce7e602024-11-30T18:20:11ZengBMJ Publishing GroupBMJ Open2044-60552019-11-0191110.1136/bmjopen-2019-031658Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series studyXiaodong Guan0Luwen Shi1Haishaerjiang Wushouer2Mingchun Yang3Sheng Han4Dennis Ross-Degnan5Anita Katharina Wagner6Department of Pharmacy Administration and Clinical Pharmacy, School of Pharmaceutical Sciences, Peking University, Beijing, China3 International Research Center for Medicinal Administration, Peking University, Beijing, China5 School of Medicine, Tsinghua University, Beijing, China1 Department of Pharmacy Administration and Clinical Pharmacy, School of Pharmaceutical Sciences, Peking University, Beijing, ChinaInternational Research Center for Medicinal Administration, Peking University, Beijing, ChinaDivision of Health Policy and Insurance Research, Department of Population Medicine, Harvard Medical School and Harvard Pilgrim Health Care Institute, Boston, Massachusetts, USADepartment of Population Medicine, Division of Health Policy and Insurance Research, Harvard Medical School and Harvard Pilgrim Health Care Institute, Boston, Massachusetts, USABackground In October 2012, the Chinese government established maximum retail prices for specific products, including 30 antineoplastic medications. Three years later, in June 2015, the government abolished price regulation for most medications, including all antineoplastic medications. This study examined the impacts of regulation and subsequent deregulation of prices of antineoplastic medications in China.Methods Using hospital procurement data and an interrupted time series with comparison series design, we examined the impacts of the policy changes on relative purchase prices (Laspeyres price index) and volumes of and spending on 52 antineoplastic medications in 699 hospitals. We identified three policy periods: prior to the initial price regulation (October 2011 to September 2012); during price regulation (October 2012 to June 2015); and after price deregulation (July 2015 to June 2016).Results During government price regulation, compared with price-unregulated cancer medications (n=22, mostly newer targeted products), the relative price of price-regulated medications (n=30, mostly chemotherapeutic products) decreased significantly (β=−0.081, p<0.001). After the government price deregulation, no significant price change occurred. Neither government price regulation nor deregulation had a significant impact on average volumes of or average spending on all antineoplastic medications immediately after the policy changes or in the longer term (p>0.05).Conclusion Compared with unregulated antineoplastics, the prices of regulated antineoplastic medications decreased after setting price caps and did not increase after deregulation. To control the rapid growth of oncology medication expenditures, more effective measures than price regulation through price caps for traditional chemotherapy are needed.https://bmjopen.bmj.com/content/9/11/e031658.full
spellingShingle Xiaodong Guan
Luwen Shi
Haishaerjiang Wushouer
Mingchun Yang
Sheng Han
Dennis Ross-Degnan
Anita Katharina Wagner
Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series study
BMJ Open
title Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series study
title_full Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series study
title_fullStr Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series study
title_full_unstemmed Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series study
title_short Influence of government price regulation and deregulation on the price of antineoplastic medications in China: a controlled interrupted time series study
title_sort influence of government price regulation and deregulation on the price of antineoplastic medications in china a controlled interrupted time series study
url https://bmjopen.bmj.com/content/9/11/e031658.full
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