Study On Public Health And Medical Service In The System Of Public Finance

There is no health, there is no full-scale development and comparatively good living standard. From the economic direction, health belongs to durable goods, it can brings people with happiness and usefulness, whose quantity is measured by health indexes as well as stock of health. To keep good health, people should have the increased consciousness of health assurance and receive perfect public health and medical service. The growth of health can promote the development of economy and society, so our government and Community Party should pay a great attention to health assurance system and strengthen the efficiency of health mechanism. The premiers of China-Jiabao Wen in the meeting for public report about government work in 2004, pointed out: this year, to improve the people health assurance system, we must focus on general affairs, as follows: the first, to strength the construction of public health system, we plan to establish the system of public health and medical service which all residents of cities and countryside can benefit from, its function must be perfect and flexible in order to overcome difficulties in prevention contagious diseases and illness. The second, to drive ahead the reform on health and medical system for urban residents. The last, to improve the conditions of rural health assurance, establish a collective medical insurance of new type in rural areas. Now this new system is put into practice through making experiment in some rural areas.According to the main principles of public economy and public finance, health assurance belongs to public goods, whose effectiveness and cost is external, so the collocation of medical resource ought to be carried out by government, whose capital is included in the provisions of public finance. In addition , the best health state should accord to the justice principle and efficiency principle.In 1999 China was determined to construct the public finance framework, stress its development function in a market-oriented manner and overcome the problem of market failure. In this framework, the government is not dislocated and excess, but rationally oriented. Moreover market failure and government failure problem is overcome.From this principle, we rationally regard public health and medical service as social affairs and function of government. According to that public health and medical service is competitive and excludable or not, they are divided into four different types of goods. The first type: pure public goods which is not competitive and excludable, such3as the epidemic diseases control, health education, provided by government; the second type: mixed public goods, such as prevention epidemic diseases whose marginal external cost is low but excludable level is high, whose provision is co-payment by government and individual; The third type: congestible goods, such as caring health for women and children, whose marginal external cost is high but excludable level is low, is also provided by government and individual. The fourth type: private goods, which is completely competitive and excludable, such as medical and recovery service, provided by market and paid by consumers.According to the main principles of construction of public finance-justice principle and efficiency principle, the topic emphasizes on the present situations and the lack of government function, seeking for the origin to problems. The basic conclusion is to bring forth new ideas to health assurance system and establish a demand-oriented health institution, define a type of dynamic state public goods as well as a type of local public goods.The paper is composed of five parts and proceeds as follows:Part one: theory on public finance and health assurance system. The paper expounds the general theories on public finance, provisions of public goods and the principle of social welfare economy, analyzes the property of public health and medical service as to public goods and its main suppliers. Then systematically introduces the general theory on health assurance system such as fu...