SWOT-PEST analysis of the policy of abolishing markups on decoction pieces in the TCM industry
This paper systematically analyzes the impact of abolishing markups on decoction pieces on the TCM industry and related industry chain through the integrated SWOT-PEST model,literature analysis and qualitative interview.Advantages,disadvantages,opportunities and challenges of abolishing markups on decoction pieces are analyzed from four aspects:politics,economy,society and technology.The following are advantages.1.Policies that support removing markups on decoction pieces are continuously improved and there are pilot experiences.2.The proportion of reimbursed decoction pieces has increased;breeding costs of Chinese medicinal herbs have been reduced,and subsidies have been increased.3.The price reduction of decoction pieces is in line with social expectations.4.New technological innovations help to reduce costs.The following are disadvantages.1.Because of the complexity of decoction pieces,the relevant experience can't be fully applied.2.The government's compensation mechanism is not perfect,and the gap of funding increases;increasing operating costs force hospital to reduce the use of decoction pieces.3.The decrease of profit may lead to the vicious development of TCM industry chain.4.The superior technology of breeding has not been fully promoted;the construction of Internet of Things is not complete.The following are opportunities.1.The related work of removing markups on decoction pieces is proposed at the national level.2.The price of drugs tends to be reasonable due to the centralized volume-based drug purchase whose measures are"volume-based purchase,the linking of quantity and price,and the integration of recruitment and purchase".3.People's recognition of traditional Chinese medicine is increasing,and the demand for traditional Chinese medicine is increasing.4.Modernized transformation of breeding industry of Chinese medicinal herbs has been accelerated;the internationalization of Chinese medicine expands the market.The following are challenges.1.The work of promoting the experience of pilot cities has great resistance and the time is not correct.2.Government financial subsidies for hospitals are insufficient;profits may breed new forms of industrial corruption.3.The enthusiasm of licensed pharmacists is greatly weakened;the remaining retail terminals are forced to transform.4.The yield of"genuine Chinese medicine materials"is limited by many factors in each region.Suggestions are put forward to further improve the compensation mechanism,establish a scientific and reasonable payment system for decoction pieces,formulate a standardized salary system,and expand people's awareness of acceptance and use of TCM.
abolish markups on decoction piecesSWOT-PEST modelpolicy analysis