Research On Governmental Regulation Of China's Health Care Industry

With comprehensively entering the well-off society, the fast development of our country's market economy and the gradual advancement of the health system reform after joining WTO, every kind medical institution displays respective superiority in the market under the policy of taking the public ownership system as the main body and many kinds of systems of ownership coexisting. With the characteristics of reciprocal promotion, fair competition and communal development, the new health care industry layout forms gradually. Market mechanism plays an important role in the deepened reform of the health system, the development of health care industry, and the optimized disposition of health resources. The government regulation system with the basis of the market economy quietly separates from the administrative system of the public medical institutions and gradually develops. Our present regulating system of health care industry already has certain embryonic form.Comparing with the present situation of the health care industry development, the present governmental regulation system of the health care industry has many problems urgently to be solved in entrance and supervision. Moreover, the revenue may be smaller than the cost during the course of the government regulation, thus the government regulation fails to work properly and regulation institutions may be captured. The commercial bribes and corruption appear constantly and the phenomenon stands out in the domains of drugs and medical instrument purchase. This is so-called the Regulation Capture Theory. We must realize the limitation of government regulation and transform the regulation system at the right moment along with the economic development. The government should withdraw from the domain that the market mechanism can display function better and reduce the regulation cost simultaneously.The present health care industry is basically harmonious, but still has some problems. We need strengthen the government regulation further under the condition of the market regulation malfunction. Our present health care industry has many problems, mainly in entrance, price, service, investment and drugs.Next, this article reviews the related literature material, and puts emphasis on the theoretical controversy over our present government regulation of the health care industry. The government-oriented school focuses on the establishing dominant position of public health care, the strengthening planned price regulation of the health care and drugs, and achieving the public welfare effect. The market-oriented school believes that it is not the inevitable result of market adjustment to see a doctor expensively and difficultly. They certainly do not advocate that the medical domain should be adjusted by market entirely, but pay great attention to the system design, which enables the hospitals to compete orderly under the fair environment, finally achieves the public welfare goal.Concerning with the health care industry problems, this article takes four basic medical systems as the policy guidance and suggests introducing the stimulating regulation. One of methods is yardstick competition, and its significance lies in providing the real cost information of the regulated hospitals for the regulation institutions. The article puts emphasis on the entrance regulation, the price regulation, the service regulation, the investment regulation and the drugs regulation.Finally, this article evaluates and borrows ideas from the way of the drugs price regulation and regulation measures on how to use medicine reasonably in various countries' governments. Combining with the specific national condition, we make a preliminary frame design for the health care industry in our country, and attempt to make some research conclusions.