Leveraging the centralized drug purchase platform of medical institutions in Beijing, the study measured the drug price index (DPI) and the DDD price index from 2005 to 2013, and the outcomes indicate a drop of both the drug price index and the drug price index calculated by DDD.Despite such drops however, drug price drop by itself could not curb the constant rise of drug expenses and medical costs due to changes in the structure and interval of drug administration.

In line with the organizational theory, the authors described characteristics of management systems with conventional organizational structure,and those of enterprise management systems of special organizational forms. On such basis, the paper explored in depth the uniqueness of hospital management systems and cornerstone principles, thus proposed key points of modern hospital management system. In this study of systems for resource control, appraisal and incentive, the authors attempted to establish a balanced governance.