Effects of Drug Price Changes on Patient Expenditure: Evidence from China’s Zero Markup Drug Policy

Table 3

The effect of the ZMDP on hospital revenue.

	Total expenditure	Drug	Registration	Diagnostic	Examination	Laboratory	Therapeutic treatment	Operation
Panel A: outpatient
ZMDP	−0.11 (0.06)	−0.15 (0.09)	0.07 (0.07)	0.00 (0.00)	0.02 (0.14)	0.09 (0.09)	0.08 (0.11)	−0.2 (0.15)
N	577	586	577	571	581	582	586	575
R2	0.91	0.83	0.83	0.79	0.89	0.91	0.85	0.89
Panel B: inpatient
ZMDP	−0.03 (0.04)	−0.1 (0.05)	−0.01 (0.06)	0.67 (0.28)	0.46 (0.2)	0.33 (0.17)	−0.09 (0.08)	−0.15 (0.12)
N	548	558	553	545	564	564	548	563
R2	0.94	0.94	0.88	0.89	0.89	0.84	0.85	0.96

Note. ZMDP, zero markup drug policy. The coefficients show that the estimated, natural log-transformed dependent variables can be roughly interpreted as the percentage changes before and after the ZMDP’s implementation. The numbers in the parentheses are standard errors clustered at the county level. The control variables consist of hospital tier, the number of hospital employees, and the number of hospital beds. , , and denote the significance at the 1%, 5%, and 10% levels, respectively.