A Study On The Benefit Distribution Mechanism Of Typical PPP Model In China ’s Medical Service Sector

With the advancement of urbanization and the growth of income levels,the Chinese people’s demand for medical services is growing.The progress of medical technology makes the average life expectancy is prolonged,the population of China is aging.In the future,there is a big gap between the supply and demand for medical services.In this situation,relying solely on government spending to build a public hospital is difficult to sustain.It is necessary to encourage the private sector to organize medical services and to promote public-private partnerships(PPP)in the medical services sector.Exploring a benefit distribution mechanism in accordance with china ’s national conditions can improve the participation of social capital.In this context,this paper hopes to study the typical model of PPP in China’s medical service industry and the corresponding mechanism of benefit distribution based on the optimization theory.In this paper,PPP in China’s medical service industry is divided into franchise mode and property rights cooperation model.The distribution of benefits is defined as how to determine the price of medical services,the amount of government subsidies,the length of franchise period and the quality of medical services.In the franchise model,the government controls the price and quantity of medical services and determines the optimal franchise period,the quality of medical services and the amount of subsidy by controlling the yield of social capital.In the property rights cooperation model,if the hospital restructuring to the for-profit hospital,the government will not give subsidies,social capital can independently determine the price of medical services.If the hospital is a nonprofit hospital,the government can subsidize the hospital for the purpose of maximizing social welfare.This paper discusses the quality of service,service prices,and government subsidies under different subsidy policies.In this paper,we have established the optimal model and solved it in different cases.This paper finds that under the franchise model,the franchise period is negatively related to the quality of service provided.If the price is constant,the amount of subsidy is positively related to the quality of service and the subsidy policy is valid.In the property rights cooperation model,if the government restricts the level of social capital gains or tax policy,the quality of service of nonprofit hospitals is the same as that of for-profit hospitals,but the service price can be reduced.The government needs to be cautious when formulating subsidy policies that are positively related to the quality of the subsidy.This subsidy policy may not necessarily be the goal.Finally,this paper analyzes the benefit distribution mechanism in the actual case,and uses the actual data and the related hypothesis to test the model deduced in this paper,and compares the similarities and differences between the theoretical calculus and the actual data.