# Effects of transparent online open procurement on prices, volumes, and costs of medicines: an interrupted time series study in Ningxia, China

## TL;DR

A transparent online procurement policy in Ningxia, China, led to lower medicine prices, reduced purchase volumes, and decreased total costs over time.

## Contribution

This study evaluates the impact of transparent online procurement on medicine pricing and costs using an interrupted time series analysis.

## Key findings

- Average medicine prices decreased by 0.012 Yuan per month after policy implementation.
- Total purchase volumes dropped by 1.741 million units per month.
- Total costs of purchase orders declined by 5.525 million Yuan per month.

## Abstract

To assess the effects of the transparent online open procurement arrangement on the prices, volumes, and costs of medicines in Ningxia, China.

Data were extracted from the Ningxia pharmaceutical procurement platform, covering 16 months of purchase orders (December 2019 to March 2021) prior to the implementation of the transparent online open procurement policy and 20 months of purchase orders after the implementation of the policy (April 2021 to November 2022). Interrupted time series (ITS) analysis was performed to evaluate the effects of the transparent online open procurement policy on the prices, volumes, and total costs of the purchase orders.

After implementation of the transparent online open procurement policy, the average price of purchased medicines showed a declining trend by 0.012 Yuan per month, while the total volume of purchase orders declined at a rate by 1.741 million per month measured by the smallest formulation units and the total costs of the purchase orders decreased at a rate by 5.525 million Yuan per month.

The transparent online open procurement policy resulted in reduced prices, lowered volumes, and lowered total costs of purchased orders of medicines.