Assessing the Impact of the New Medical Reform on China’s Pharmaceutical Supply Chain

The new round of reform in the Chinese medical system has led to optimization of the country’s pharmaceutical supply chain. This, in turn, has led to unprecedented opportunities and challenges for operators and consumers alike within this market. The reform has also brought about an urgent need for rigorous scientific analysis of the impact this may have on the country’s pharmaceutical supply chain, especially as it relates to the rural areas. The objective of our research is to contribute to the enhancement of knowledge in this area. Specifically, our research is concerned with an empirical investigation of the impact of new medical reform on essential medicines supply chain in three rural areas of China: Yuping, Luochuan, and Minhang regions. The following questions are central to our research: To what extent is the efficiency and effectiveness of the supply chain for these products enhanced as a result of the implementation of the new medical reform? Is the level of availability and affordability of these medicines enhanced among consumers in the rural areas as a result of the reform? What is the role of rural medical institutions, such as district hospitals and outpatient clinics, in ensuring a more efficient and adequate supply mechanism for these products in the rural areas? Has the implementation of the new reform led to a more efficient management of the relationship between the essential medicines supply chain and government rural Cooperative Medical System? Three research hypotheses have been developed as the basis for addressing these issues from an empirical perspective.