Research Results from Shanghai Jiao Tong University School of Medicine Update Understanding of Public Health (Differential effect of China's Zero Markup Drug Policy on provider-induced demand in secondary and tertiary hospitals).

A study conducted by Shanghai Jiao Tong University School of Medicine examined the impact of China's Zero Markup Drug Policy (ZMDP) on hospital expenditure and revenue in secondary and tertiary public hospitals. The ZMDP, implemented in 2009, eliminated the 15% markup on certain medications previously allowed by the government. The study found that while the ZMDP reduced expenditure on drugs, it increased expenditure on medical services, exams, and tests, resulting in increased hospital revenue. The analysis also indicated that tertiary hospitals experienced a greater increase in revenue compared to secondary hospitals. The study suggests that additional policies may be necessary to address provider-induced demand and reduce patient costs. [Extracted from the article]