Pharmaceutical prices are subject to hierarchical management.
The competent price department of the State Council is responsible for formulating policies, principles and methods of drug prices; formulating the prices of national essential medicines, prescription medicines in the national basic medical insurance medicines and special medicines with monopoly in production and operation.
The price authorities of provinces, autonomous regions and municipalities directly under the Central Government are responsible for setting the prices of non-prescription medicines (excluding national essential drugs) and locally supplemented medicines for medical protection in accordance with the unified policy of the State.
Non-profit medical institutions to dispense their own drug preparation prices, by the provinces, autonomous regions and municipalities directly under the Central Government in accordance with the local situation to determine the price management authority, form and content.
Expanded:
Reform of medical service price management
(1) The price of medical services is managed through a combination of government-guided prices and market-adjusted prices. Non-profit medical institutions to provide basic medical services, the implementation of government-guided prices; for-profit medical institutions to provide a variety of medical services and non-profit medical institutions to provide special medical services to implement market-regulated prices.
(2) The prices of medical services are subject to a uniform policy and hierarchical management. The competent price department of the State Council, in consultation with the relevant departments, formulates policies on medical service prices as well as items, pricing principles and methods, and strengthens the guidance and coordination of local formulation of medical service prices. The guideline price of basic medical services shall be formulated by the competent price department at the provincial or municipal level in conjunction with the health and human resources and social security departments at the same level.
(3) the price of basic medical services to reflect the nature of public welfare. Basic medical service prices should be in accordance with the "reasonable compensation costs, taking into account the masses and the basic medical insurance affordability" principle of approval. Setting the price of basic medical services based on reasonable costs, in accordance with the deduction of financial subsidies, medical institutions selling drugs and medical equipment (consumables) price differentials accounting.
(4) reform of medical service pricing. According to the development of medical technology and clinical diagnosis and treatment needs, improve the price of medical services project specifications, the reasonable establishment of medical services price items.
Strictly control the new medical examination and test items simply in the name of new equipment, new reagents, new methods, etc., and further standardize the name of medical service price items and service content. Gradually reform the item-based pricing of medical services, and actively explore medical service pricing methods that are conducive to cost control, openness and transparency, and ease of operation.
Communities, township health centers and other primary medical institutions to carry out personalized services for the convenience of the people, can be set in accordance with the service time, the number of services and other ways to set prices.
(5) Reasonably set prices for services at different levels of medical institutions and different grades of physicians. According to factors such as the level of medical institutions, the level of physicians and market demand, different guide prices can be set for medical services. To gradually widen the price gap, and promote the rational triage of patients.
Baidu Encyclopedia - Circular on the Issuance of Opinions on Reforming the Price Formation Mechanism for Drugs and Medical Services