Study On The Market Mechanism And Government Regulation In Medical Service System

For the sake that health is one of the fundamental rights of mankind, whether developing medical and health services or not is closely related with the vital interests and well-being of the broad masses of people. The discussion for the reform of medical and health system from various sectors of the community has become more and more intensive and fierce, which has focused on whether market-led or government-led reform is more feasible. Supposed that there exists serious market failures in medical and health care market, fair medical and health services could not be provided consequently, scholars in favor of "government-led" views propose the medical and health systems to be controlled by government. Corresponding to this point, scholars supporting the "market-led" views believe that the fundamental problems existing in medical and health field are due to the pseudo-marketing essence. Only by means of establishing a "market-driven" medical supply and operation mechanism and a management system, it could be possible to break the dual monopoly of medical technology and industry system, so as to optimize the allocation of resources for health care and fair distribution of medical benefits. This point would be the focus of this paper, that is, how to look at the current discussion about government and market, and how to play their roles in the area of health and care services. Based on public goods theory and the theory of market imperfections, this paper has put up with the following four-step research process, that is, to raise questions firstly, to exposit theories secondly, then to analyze questions, and to propose final conclusions. In first part, this paper explains the attributes of the medical services products and the basic theories about government intervention in medical market. The second part concentrates on analyzing the necessity and possibility of participating medical services for both government and market, which can provide some reforming experience and reference for national medical services mechanism. In part three, the paper discusses the former practices and explorations of the medical services systems, which are described as"Government full of responsibility and omnipotence"developing into"Independency of the market-oriented reform", neither of which could adapt to the new status in quo of China's medical and health services under the benign development situation. Through analysis of the explorations and practices passed, the paper concludes that both government and market are obligated to jointly participate in developing our medical and health services to resolve the essential problems, which cannot be accomplished by one of the two. In the last part, it points views that it's first of all to clearly define the relationship between the government and the market about China's medical services reform in future, and meanwhile puts new operating mechanism for them. The main measures for solution are described as follows: to establish an effective mechanism of market competition so as to supply diversified medical services; to construct sound medical security system so as to meet the needs of multi-level medical services; to set up an effective monitoring and restricting mechanism so as to ensure fair market competition; to regulate the micro-operation mechanism in medical service market; and to introduce new mechanism called"a third party to purchase"mechanism so as to innovate methods of payment.