Research On Efficiency Of Medical Health Service In China

People's health grows rapidly with rapid economic development. Statistics show that urban residents' total expenditure on health care spending rose from 1.3% in 1989 to 7% in 2008 and rural residents' total expenditure on health care spending rose from 3.1% in 1989 to 6.7% in 2008. The level of health services not only directly relates to the health of the masses, but also plays an important effect in the country's economic, social development. However, our current level of health services is low. There is some differences between regions. Therefore, how to enhance the efficiency of medical and health services and use health resources to achieve the best social and economic benefits are important issues, which must be solved by government and relevant departments.The first problem remaining to be solved in heightening the efficiency of medical and health care is to evaluate the scientific and precise efficiency. Data Envelopment Analysis is one of the methods, which are used to evaluate the efficiency of medical and health care. And it fits for efficiency evaluation of medical and health efficiency with multi-inputs and multi-outputs. DEA not only can evaluate the technical efficiency and scale efficiency of hospitals, but also can implement quantitative analysis over the existent input and output problems of lower-efficiency provinces and cities, which assists government administration and health policy makers in making decisions.This paper researches on the differert efficicecy of medical health care of China's 31 provinces and cities.The key to the establishment of DEA model is how to select the evaluation indicators.The general principles are: fully information of the basic medical care and health services, a high availability of data, the total number of evaluating indicators should be less than half of the number of evaluation units, reasonable match between absolute and relative indicators but absolute indicators—based. In the whole of indicators which are used to reflect the efficiency of the medical and health care, some have a great relevance between each other, and some have a lower degree of variation. It will affect the scientificity of the evaluation outcome via DEA by adopting those indicators. Therefore, this research screen the final evaluation indicators by using the Cluster Analysis method, Spearman correlation analysis method and Coefficient of variation method.After the determination of the input and output indicators, this paper makes an analysis by using the Data Envelopment Analysis Software and combining with statistic data of 2008. The study finds that the collocation of China's medical and health resources are unreasonable. There is a certain difference between east, central and western regions. The east region's efficiency of medical and health services is higher than the other regions. Five provinces in central and western regions are low in the medical and health service efficiency. There are redundant inputs and outputs of less in medical and health resources. In conclusion, this paper gives some policy recommendations aim at changing the phenomenon of resources waste and low output by low input of China's medical and health care, and describes the necessity of the implementation of regional health planning.