Economics Research On The Government Regulation Of China Health Industry

As an important component in our country's social economic development medical and health services not only affect the life safety of our people, but also becomes the main focus of developed countries and developing nations. With the steady development in our political, economical and cultural domains, the reform of medical and health services has been an important criterion of china rising. look back the recent three decades after opening-up and reform, we can see But it's still far from enough of the reforms of our governmental education in medical and health services. Now our reform in that area has been in the initial stage, The deficiency and contradiction in mechanism and system, the complexity of various connections, as well as the emergence of new problems and conflict, have made the regulatory issue of medical and health services in the teeth of the storm. Although some scholars have done a lot research in medical prices, medical system, and governmental regulation. But none has combined the mechanism and system together in their governmental regulation research. The paper has five parts, to explore the real proper mechanism and system in medical and health services by researching the status, problem and the criterion, and analyzing the foreign medical and health services.The first part is the introduction of the main features in medical and health services and the necessity of governmental reform and regulation. First, the four main features are:the production in that area can be divided into public goods, decided public goods, private ones. Second, private income are much lower than social income. Third, information Asymmetry exists in medical and health services. When a patient makes a decision, he usually rely on a doctor's decision. Fourth, state-owned monopoly is one feature, compared with Private hospital, state-owned hospital can gain more grant-in-aid form the government, also has the excellent doctors, advanced medical equipment, tax advantage. Then the four features are analyzed by making a conclusion that there is a necessity for governmental supervision. Finally, the necessity for reform can be analyzed in two ways, the medical reform can solve the problem for people who find difficulty in seeing a doctor and paying too much for the medicine, and solve the problem of unsound system of medical care insurance.The second part of this paper is an economical explanation for several issues in governmental supervision in medical and health services. First, the irrationality of the distribution of medical resources can be improved by Pareto Optimality from the economical aspect. Second, "the doctors are raised by medicines" phenomenon can be economically analyzed by the system of " cost—income". Finally, contradiction among the governmental supervisor, the hospital staff, and the medicine applier is the hinge of medical supervision. A series of hypothesis and models are applied for analyzing the contradiction.The third part of the paper is the introduction of the status and existing problems in China's governmental supervision in medical and health services. The status of the medical and health services in China has gone through the periods of new china was founded,1980s,1990s,2000-2008, and 2009-2010. The problems mainly reflect in 6 aspects. First, governmental function in medical and health services is so scattering, so it's supervision is ineffective. Second, administration can not be separated from government and officials, there is also a lack of coordination and cooperation among related departments. Third, there is a long time existence of doctors are raised by medicine, with the market lacking orders, medical and health services have been corruptive field. Fourth, the governmental financial input is not enough, and the fund flow is not clear. Fifth, the limited medical resources is wasted by irrational distribution. Sixth, legislation is not updated for the current problems.The fourth part of the paper is the international comparison of governmental supervision in medical and health services. First, the American governmental supervision in medical and health services is leading by market in the aspects of medical insurance, the separation between doctors and medicines, (DRGS), governmental supervision in medical and health services. Second, British governmental supervision in medical and health services is leading by government from the aspects of the application of NHS, introducing competitive mechanism, and the separation between doctors and medicines. Finally, a few enlightenments is obtained from the above comparison.The last part of the paper is the introduction of several suggestions for improving the governmental supervision in medical and health services. First, realize the duration averaging of medical resources. Second, make an application of the separation between the administration and the government. Third, improve our medical laws. Fourth, establish the system of open medical information. Fifth, make a separation of the doctors and medicines. Sixth, there is a need for the reform of medical insurance.