A Study on the Monopsony of National Health Insurance and Competition Strategies of Oncology Pharmaceutical Companies
Date Issued
2012
Date
2012
Author(s)
Chien, Chih-Ming
Abstract
The Bureau of National Health Insurance is the only insurer due to the National Health Insurance system that acquires the right of monopsony and control the behavior of medical providers in certain degree. With the progress of the cancer treatment development in the pharmaceutical industry. It’s necessary to study further about the National Health Insurance payment problems for cancer treatment.
The purpose of this study is to understand if there is any difference of drug payment scheme in different degree of malignancy of cancer drug. It also explores the relationship between the treantment cost of cancer and the overall survival time of patients. Therefore, we can figure out the drug promotion and management strategies of the pharmaceutical industry under the circumstance of insurance monoposony. This article will also propose how the government and pharmaceutical companies can react for better policy or management.
The sample of this study is divided into three parts, one is the statistic data of cancer incidence and mortality rate from the report of department of Health announced in 2010; another part is about the suggested dose of the lung and colorectal cancer for survival period extension, this kind of documents are collected from the international medical journals in the past 10 years; the other part is the approved drup price announced from the Bureau of National Health Insurance. The research method contains the calculation of M/I Ratio and the regression analysis of treatment cost and overall survival time.
The study found that the avarage cost to extend one month survival of a lung cancer patient is NT$ 20,645, and NT$ 13,862 for colorectal cancer. The different degree of malignancy will result in the approved drug price. In the other hand, the Bureau of National Health Insurance is willing to give better payment for the cancer treatment with worse malignancy. According to the regression chart, the lung cancer and colorectal cancer are both in linear model which means there is no diminishing marginal utility. In other words, the government will tend to restrain the drug price in the end of the treatment development cycle.
Subjects
National Health Insurance
Monoposony
Cancer
Drug Payment
Diminishing Marginal Utility
Mortaility/Incidence Rate
Overall Survival
SDGs
Type
thesis
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