Research On Financing Channels Of Public HD Hospital

The way of raising funds in public hospitals of China has been mainly based on the government’s financial allocation. The daily operation of the hospital is mainly supported by the hospital’s business income. With the development of medical market and medical reform, government funding has not meet the normal development of the hospital. The drug revenue will be stripped from the hospitals. The hospitals are facing the problem of survival which forced the public hospitals must seek new financing channels to alleviate the financial pressure.Firstly, through the study of foreign public hospital financing channels, and then combined with the existing financing channels of public hospitals in China, We realized that our public hospitals can raise funds from adjusting the price of medical service, charitable donations, absorbing social insurance and so on Taking HD hospital as an example. Through the analysis of the income structure of HD hospital, more than 40% of the total revenue is from drug revenue. The development of national drug control will affect the hospital. It is imperative to increase financing efforts and broaden the financing channels. The government with the support of HD hospital financing is feasible. But the financing regulations of public hospitals has not issued. The public nature of the HD hospital is the biggest problem in the financing.In addition to the financing channels of foreign public hospitals, the enterprises’ way of raising funds can also bring a reference to the HD hospital. Besides the lowest cost of funding, HD hospital can use financial leverage and commercial credit. In sufficient solvency situation, HD hospital should find the optimal capital structure and use the loan account to raise funds. For restricted financing lease, HD hospital can be leased office equipment to a certain extent. It also help reduce the pressure of the hospital. The flexible application of retained earnings and using the opportunity cost can also bring benefits to the hospital.Finally, there is a risk of financing. HD hospital should establish early warning mechanisms, analysis the financial information and financial indicators, and take multi-channel financing to reduce the risk.In this paper, we hope that through the study of the financing channels of public hospitals, we can not only design a feasible financing channel in the medical system, but also hope to provide reference and reference for other government non-profit organizations.