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The Effect of Risk-Averse Medical Institutions’ Procurement Strategies on the Pharmaceutical Supply Chain |
WU Lu,GUO Qiang,NIE Jiajia |
1. Jiangsu University, Zhenjiang, Jiangsu, China; 2. Southwest Jiaotong University, Chengdu, China; 3. Service Science and Innovation Key Laboratory of Sichuan Province, Chengdu, China |
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Abstract Based on the purchasing policy of China’s drug market group, this study constructs a pharmaceutical supply chain procurement model in the presence of group purchasing organizations, and analyzes the impact of risk-averse characteristics of medical institutions on procurement strategies. The results show that: First of all, when the economy of scale brings small discounts, medical institutions adopt the same purchasing strategies as when they are risk-neutral. Besides, when the economy of scale brings large discounts, if the market size is larger, the purchasing strategy of medical institutions will change from decentralized purchasing to group purchasing with the degree of risk aversion increases; If the market size is small, medical institutions adopt the group purchasing strategy. Finally, when the level of risk aversion of medical institutions and the market size are at a certain level, medical institutions and pharmaceutical company can achieve a win-win situation.
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Received: 01 March 2022
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