Pharmaceutical expenditure changes under the volume-based procurement policy: Effects and influencing factors

Ying Yang, Yuanhui Duan, Lei Zhou, Sisheng Gan, Zongfu Mao and Furong Wang

PLOS ONE, 2025, vol. 20, issue 8, 1-16

Abstract: Objectives: To estimate the impact of China’s volume-based procurement (VBP) policy on the expenditure of both policy-covered and uncovered drugs, and to identify the elements that contribute to drug expenditure changes under VBP policy. Methods: Using national drug procurement data of public medical institutions, this study included 25 policy-covered VBP drugs and 99 policy-uncovered alternative drugs as samples, seven “4+7” pilot cities and eight “4+7” expansion provinces as observation regions. Time-varying difference-in-difference (DID) model was applied to quantify policy impact on drug expenditures. The drug expenditure index decomposition method was employed to analyze the determinants of drug expenditure changes following VBP policy. Results: The expenditure of VBP drugs significantly decreased by 42.19% after VBP policy (β = −0.55, p secondary hospital (β = −0.57, p primary healthcare centers (β = −0.39, p

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0330296

DOI: 10.1371/journal.pone.0330296

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