Study On Phenomenon Of Supplier Induced Demand In Health Service Market Of China

Objective:By use of the correlation,regression analysis between the supply and utilization of health resources in China,to estimate the influence of supplier induced demand on health resources utilization and the extent of the impact in different areas of the medical use of resources and the extent of the impact of size, to provide a scientific and rational basis for government to make policies.Method: This paper combine theoretical analysis and empirical analysis to research the phenomenon of supplier induced demand in health service market of China. Quantitative Study use the relevant data from both "China Statistical Yearbook" and "China's Health Statistics Yearbook" in 2007,estimate the degree of supplier induced demand by dual log-linear model ,as a whole and in the district by the different ways.Results: 1,The supplier induced demand phenomenon can generate substantial profits for the supplier side,and have a significant incentives, will be able to offset the loss of income because of competing. The supplier side very likely induced demand, in the absence of other restraining conditions, and the demand will be induced to a considerable extent. At the same time, the suppliers will not induced demand to an infinite level ,because of the cost .If there is no other constraints, the provision of the optimal health services will be the point which marginal benefit equivalent to the marginal cost.2,The number of health professionals per 1,000 population is 4.03 in China,and have a larger gap between the minimum and the maximum ,the maximum number of health staff per 1,000 is more than at least 4.0 times in the minimum ,reflecting China's regional distribution of medical resources is uneven.3,Through regression analysis, the results showed that health staff per 1,000 population increase average 1%, the average clinic visit and medical expenses number per capita will increase 0.971%, 1.118%. The study found that in areas with inadequate medical resources, the people's purchasing power is relatively low, the supply increase is the result of medical utilization facilely, and in health care adequate resources of the region, people's purchasing ability is higher, the phenomenon of supplier induced demand is quite serious, when grouping all province by number of health staff per 1,000,per capita household income .Conclusion: Supplier induced demand is a special phenomenon which dependent on the health services market and its reasons are manifold. In many factors which impact on health services demand, number of health staff per 1,000 and per capita household income significant impact on demand, representing both the supply of medical services and people's purchasing power. Curb the occurrence of induced demand, need to control the whole by government, and both supply and demand intervention.