Report Title: Drug Shortages and Reimbursement Policy in Healthcare Supply Chain

Reporter: Justin Jia, Assistant Professor, Haslam School of Business, University of Tennessee

Time: June 9th (Friday) 14:00-15:30 PM

Location: Main Building 326

Tencent Conference Number 861-243-637

Content Introduction:

In 2005, Medicare changed its drug reimbursement policy from an Average Wholesale Price (AWP) regime to an Average Sales Price (ASP) regime. The years following the change witnessed severe drug shortages. We perform drug supply chain analysis to address the continued arguments on whether the ASP policy is a major cause of the drug shortages. We find that the ASP policy actually possesses resistance to drug shortages due to the policy’s unique structure.

Personal Introduction:

Justin Jia is an assistant professor in the Department of Business Analytics and Statistics at the University of Tennessee. He holds a Ph.D. in Supply Chain Management from Penn State University and served as a faculty member at Purdue University before joining UT. His research interests lie in the areas of healthcare supply chain, prescriptive analytics, e-operations and inventory management. He has published articles in journals such as Production and Operations Management and Management Science.

(Organized by: Department of Management science and Logistics, Scientific Research and Academic  Center)