A Study On Compensation Management Of Public Hospital Based On New Institutional Economics

Along with the progressing of reformation of our national health care system, therunning model of public hospital ought to be changed. For the compensationmanagement is the important part of the running model, it is necessary to study on itand find out the reasons behind the problem, moreover to bring forward somemanagement suggestions. The study focuses the reality of the compensationmanagement of public hospital, and based on the New Institutional Economics, to findout the reasons of the problems and come up with some management policies.The study have constructed property right model/agreement model/efficiencymodel based on the property right theory/agreement theory/rent dissipation theorywhich are from New Institutional Economics, this models are the consequences of theanglicizing to the compensation management of public hospital. The main progeniesof this paper are listed below.1. Applying New Institutional Economics to the compensation management ofpublic hospital, the study builds a new analysis frame.2. Constructing the property right model of compensation gross management inhospital, it's bring forward that the dualism of property of public hospital result in thedualism of human resource requirement of positions. In order to balance thecompensation gross, the public hospitals use the right of monopoly to exchange thenormal human resource requirement of positions. The position compensation equalsthe marketable value of human resource which is including normal requirement andmonopoly requirement.3. Constructing the agreement model of compensation distribution managementin hospital, it's bring forward that the dualism of human resource requirement ofpositiones, and further result in hospital's positiones chasing the maximum monopolyprofit. The inner and outer monopoly right market of public hospitals fulfills themonopoly right's contribution in hospital's positiones, so the position compensation ismade by monopoly right market.4. Constructing the efficiency model of compensation distribution efficiencyassessment, it's bringing forward that government's over-administration result in thedualism of rent dissipation of position's human resource. The behaviors of hospital'semployees what have been done is to reduce the rent dissipation result in thelow-efficiency of compensation distribution system of public hospital, it adds huge economic burden to patients.5. The study draws the conclusion that the problems of the compensationmanagement of public hospital is the phenomena of conflict between the planningsystem and market system which takes place in the public hospitals. The publichospitals should eliminate the inner monopoly right market, and change the way bywhich hospitals get monopoly profit. On the other hand, hospitals should build a newperformance measure system to distribute the monopoly profit in a reasonable wayï¼›Our government should make the boundary of hospital's property more clear, andbuild a health care market including all kinds of hospitals, such asgovernment-owned and person-owned, for-profit and not-for-profit.