Challenges of similar supply chain model of pharmaceutical enterprises in hospital investment

Source: Murphy diaries 2016-11-16 pharmaceutical enterprises invested in hospitals in the form of PPP public-private partnership, hospital equity acquisition, hospital trusteeship, pharmacy trusteeship and new / expanded hospitals Among them, hospital trusteeship and pharmacy trusteeship is an important mode for pharmaceutical enterprises to enter the public hospital trusteeship, and the operation idea is mainly to take the supply chain as the business model to obtain profits However, there are several characteristics and influences behind the hospital investment operation thinking of supply chain like First of all, this way of purchasing public hospitals is mainly to cooperate with local governments, especially local governments with weak financial status In the future, the strength of such areas to allocate funds to public hospitals is weak, so it is more likely that private capital will be involved in the redevelopment of public hospitals But the core point is that these public hospitals keep the non-profit unchanged after receiving private capital investment, which means two major impacts First, although it has become a shareholder or trustee, the impact of private capital on the management, personnel arrangement and operation system of the hospital is still weak, and the hospital itself has strong motivation to protect its original system, so it is still very difficult for private institutions to intervene in management Second, private capital can not change the pricing attribute of public hospitals Under the current service pricing system, supply chain is the only feasible revenue model These two points mean that after drug companies invest in hospitals, the significance of using them as drug channels far exceeds the return of hospitals themselves, which is the same as the supply chain mode of third-party trusteeship Secondly, for the consideration of supply chain, this mode aims at a certain number of local hospitals (in terms of local scope), which has a large plate and requires a large amount of funds It is a huge test for the ability of listed companies to raise funds and fund management If listed companies try to concentrate investment in a region, it means a long-term large capital flow and intensive expenditure Finally, there are three points behind this model that run counter to the overall thinking of national medical reform First, the great investment of this mode is to help the local government with insufficient financial resources to expand hospitals, especially the large hospitals with certain strength, which is contrary to the limitations of national medical reform on large hospitals Second, due to the supply chain interests of the pharmaceutical shareholders themselves, and the large amount of funds invested in the expansion and construction of the hospital in the early stage, the revenue of the hospital itself can not meet the expectation of return, which can only be achieved by pushing up the amount of drugs sold, which is also contrary to the general direction of the national medical reform to control the cost of drugs Third, due to the supply chain model, the investors in this type of hospital investment lack experience and influence in the management, service improvement and value of the overall hospital, which makes it difficult to break through from the service quality, and in essence, it does not promote the overall value of the hospital system On the other hand, the biggest risk of the supply chain model is the drug itself With the continuous strict control of drug costs in the national medical reform, it is an inevitable way to crack down on drug prices The supply chain model faces the huge risk of reducing the total revenue and reducing the profit space Moreover, the intervention of drug companies in hospitals may also face policy risks to boost the expansion of large hospitals.