The Study On The Relationship Between Non-profit Hospitals And For-profit Hospitals

Due to some historical and realistic reasons, non-profit hospitas is the main provider of medical services in Chinese medical market, the medical resources of our country mainly concentrated in non-profit hospital. Though non-profit hospitas have played an important role in providing basic medical services and improving people’s livelihood, there are also some problems. As time goes on, People’s demand for medical services is more diverse. While because of the the positioning and the problems of non-profit hospitals, the demand has not been well satisfacted.In order to promote the reform of medical systems and solve the contradiction between the supply and demand of medical resources in our country, the government has introduced many polices which will encourage social capital to run for-profit hospitals. Though the for-profit hospitals has been promoted by the policies, the development of private medical market has not achieved the expected goals. Answering the question why the development of for-profit hospitals has been so slowly and how to promote the development has became one of the most important content of the new healthcare reform. It’s also a theoretical and realistic problem which must be solved to balance the portion of non-profit hospitas and for-profit hospitals.There are many literatures on the reason why for-profit hospitals has not developped well, which mainly from the aspect of institutional constraint. However, there are doubts that for-profit hospitals’development has been still slow, since new policies were released. Our pespective is there might be market constraint restrainting the development of for-profit hospitals. Non-profit hospitals might crowd for-profit hospitals out of the market. So, we will reseach how to promote the development of for-profit hospitals by analysing the crowding-out effect of non-profit hospitals on or-profit hospitals.Based on the relative existing literatures, this thesis has built a simple model of how patients choose hospitals to get medical services.Then we discussed the econometric models of the effect of crowding-out and the mechanism of crowding-out. Through the analysis of the data, we come to the conclusion. Firstly, the number of non-profit hospitals do have crowding-out effect to the numbers of for-profit hospitals by waiting time. Secondly, the number of non-profit hospitals can crowd for-profit hospitals out of in hospital market by quality and waiting time. And it also has crowding-out effect to the clinic market of for-profit hospitals by waiting time and fees. Thirdly, for-profit hospitals can crowd in the medical service market, by in patient waiting time and fees to in hospital market and by shorter in patient time and longger clinic time to clinic market.According to the research conclusions, this thesis offers some advice to develop for-profit hospitals. Firstly, differentiating the position of non-profit and for-profit hospitals. Secondly, improve the quality of for-profit hospitals. Thirdly, reduce the price of for-profit hospitals. Forthly, diverting the patients to for-profit hospitals by waiting time. Last but not the least, government should Strengthen the supervision for for-profit hospitals.