Rural Health Care And Medical Supplying System

Our country is developing into a transition period. There still exists many systematic and structural problems, which lead to nonstandard and insufficient supply of the Rural Health Care and imbalance of the supply system. After several decades' development, the Health Care enterprise in our country has undergone tremendous changes and made great achievements. However, the imbalance between the present Rural Health Care and the ever increasing needs of the peasants is still outstanding. The development of Health Care enterprise is still incomprehensive and inconsistent. In view of the change of the peasants' needs, the present supply system greatly hinders the development of agriculture and economy in rural areas, which makes the reformation and innovation of the system necessary. Adequate supply of Health Care is not only the peasants' urgent needs, but also is necessary to our governments' functional transformation into the role of "serving the people" and the constitution of modern industrial country.As to the topic of public product service, there are two schools of scholars maintaining different viewpoints, namely, government supply school and market supply school, which, to some extent, are opposite in logic. The opposition gives rise to the lack of public products supply theory and inconsistency in practice. American scholar Ostrom first got rid of this logical opposition. On the basic of wide exploration and study of different nations' practice. She developed a public product theory which is based on experience, and a brand new -way to the management of Health Care enterprise. According to Ostrom, public products consist of supply and production. The former is a process in which the consumers got products, and the latter is a physical process which renders public products into substance. On the basis of this distinction, the government and the market can respectively play their roles as supplier and producer according to the principle of efficiency and fairness. In Ostrom's view, government and market are not opposite but supplementary. More importantly, she put forward a third public products supply order - polycentricity.On the basis of elaborating the property of Health Care Service, this paper first analyses the transition of CMS by adopting the theory and methods of institutional economics. Secondly it explores the present state of the rural medical service and points out the existing problems and realistic difficulties. Thirdly, the paper uses the analytic framework of Health care and medical industry established by Ostram for reference, systematically and profoundly explores the problem of the supply of Health care and medical in the rural areas of China during the period of the transition. Finally, the paper puts forward a series of policies and suggestions to solve the problem.