The Impact Of Government Health Expenditure On Health Welfare

China's economic and social development has entered a New Normal,walked into a new era and joined in a new journey.The “Healthy China Strategy”,which is adapted to,will lead the development of China's health service system in all-round,all-nation,and whole cycle.Healthy China is a prerequisite for people's all-round development and a precondition for economic and social development,and also the common pursuit shared by all countries.Now that the health is the symbol of national wealth and strength and national rejuvenation,we must see to it that health is given a strategic priority in China.Health precedence strategy is the new voice of China speaking to the world on the issue of international health care and health problems.And health promotion requires the philosophy of “Health in All” public policies.Then,it is ought to involve in the study of health field as to provide the reference and suggestion for government decision-making.The phase objectives of “Healthy China 2030” has clarified that government-oriented is the principle of health input mechanism and this is necessary in determination of the government's role in security of essential health services and obligation of its expenditures on health.It also clarifies the intervention effectiveness which is the approach aims at improving not only the fair and access to,but also the system succession of essential health care.Some major issues and challenges including universal health care,sustainable health financing(expenditure scale related),equality of essential healthcare services(expenditure fairness related),etc.all involves government intervention,monitoring and evaluation.Government health expenditure is a financial policy instrument of government health intervention.In these circumstances,discussing the government health expenditure and its impact on health welfare has profound theoretical and practical significance,and also became the principal purpose of this paper.The study on the impact of government health expenditure on health welfare is not only the fundamental of government management,but also the fulfillment of the public right to health as well as the nature of government innovation and reform of the governance.The author believes that the construction of Chinese welfare system and its main idea discussed is of great theoretical and practical significance to recombine the core values from medical to health,from the political aspects to the economic aspects,from the government management to the service to the highest respect for life and the construction of the people-oriented culture.The innovation of this paper is that to propose the theoretical model of health welfare system by demonstrating the duality and three-dimensions of health welfare from the perspectives of public economics,and to build the connection between health welfare and the structure of health financing,i.e.government,social and individuals.The empirical study made a comprehensive evaluation and analysis.It also studied the impact of government health expenditure on health welfare from the volume,fairness,efficiency and effectiveness by using economic approach.In terms of contect arrangement,this paper set up an analytical framework along the context of “theoretical basis – variable relation analysis – empirical analysis – macro policy” as to get health welfare improving theoretically and in research practice.It is focused in the field of public health care input and confined the “intervention” in the dimensions of government health expenditure and its related public policy.The main purpose built into this particular study is to find the relationship and its influencing mechanism between government expenditure and health welfare.About theoretical analysis.It gives a perspective on the role of government health care intervention by using theory of government intervention in public economics;deals with understanding about what is unique about health care market based on the principles of health economics and explains the behavior of health demand and health care supply by using microeconomic tools for health economics;in line with theory of social welfare and depending on health analyses,constructs a new concept of health welfare which is the logic line thought-throughout the paper.About variable relation analysis.It mainly explores the relation between health care,government and welfare benefits.It illustrates the externality and peculiarity etc.which has always been around in the divided health care market where the health welfare produced so as to discover the obstacles that stop the welfare effect transmitting,from the economic perspective;analyses the supply and demand in health care market to provide the explanations of government health care intervention.It describes the government function in health care market by using the welfare economics framework.It is also to set forth with some emphasis about the government intervention behavior specifically in four markets of health service,factor,insurance and financing.It sets up the health welfare model within theoretical level at first,then after the fine classification and segmentation of health market in supply and demand,it is found that the government is able to improve the welfare by establishing appropriate health expenditure and service system,finally realize the optimization of the model.About empirical analysis.It measures the government health expenditure for the nation and31 provinces data in the observation period of year 2002-2016 for quantitative analysis.Evaluates the equity and efficiency of provincial government health expenditure according to its respective economic development by using Gini coefficient,Theil index and DEA-Malmquist index.Grossman health production model is used to appraise the health welfare level generated by government health expenditure.VAR test is adopted to demonstrate the dynamic correlation between government health expenditure,economic growth and health welfare.About macro policy analysis.Based on the theoretical and empirical analysis,this paper puts forward some relevant policy suggestions to achieve the scale effect,fairness and efficiency improvement of government health expenditure,and also improve the level of health welfare.It is found that China's health input has been relatively adequate,it also shows that the increase of government health expenditure has surpassed the growth of economic and social development.It presents that government expenditure capacity in health resource allocation and employment is reducing over the years,and the primary determinant of equity restricts is the discrepancy of health resource allocation in urban and rural areas.It is suggested that the grass-roots units should be taken to be implemented government intervention in order to narrow the gap of medical and health services between urban and rural areas,jurisdictions,communities and populations.Technique inefficient is the main reason for the underperforming of our government's health expenditure.We should change the growth pattern from scale-driven to tech-oriented to improve the level of public health management and medical service technology.Health care with public benefit belongs to welfare product;and health policy is a series of health care related institutional arrangements implemented by government in order to achieve the health value,functions directly in individuals,especially to underprivileged and social welfare movement.Health welfare system ought to be a sustainable system with high flexibility where the welfare transmitting mechanism exists in three-level of state,social and individual.