| Whereas the extreme policy of health care reform some time ago, medical care difficult and expensive in state hospitals become a new hot issue of society. Scince the new health care reform in our country 2009, medical and health services more and more focus on improving the level of medical and expanding the scope of health care. In this paper we summarized the problems in medical and health services of state hospitals and gave a solution pathway combined macro-policy analysis and micro-management. In order to improving public services of state hospitals overall, we committed to find the balance between national policy and service supply capacity of state hospitals in our paper.The first part in this paper, we introduced background of the study, defined the concept of state hospitals, cleared the services property of state hospitals, appraised service standards of state hospitals and analysed service capacity of state hospitals. The key to solve the effective service problem of state hospitals are not only expanding the number of medical services but also improving the quality of medical services. At the macro level, to rely on national policy we suggested allocate medical resources reasonably, establish and improve the national health care system and public hospital management system. And we proposed a flexible allocation of resources concept: depend on business centralized management, division of the regional level and rating hospital management to improve the macro-guidance capability of national health policy; depend on controling the size of hospital, physicians to change the place of practice and making full use of information resources to improve the medical and health resources are not balanced state. The second part in this paper we proposed an idea at the micro level: improving public hospitals'in-house technical allocative efficiency to drop operating costs. In this part we suggest achieving the cost-benefit balance by implementing single disease price-fixing; inhibiting physician-induced demand by implementing the clinical pathways daily management; promoting the rational use of medicines by Improving the system of clinical pharmacists; holding the vitality of the medical industry by using incentive mechanisms; implementing cost accounting within the public hospital by performance appraisal tools.The third part in this paper we proposed cost constraints in health care following medical insurance policy. Medical insurance fund the amount paid to the hospital determines the speed and extent of the development of hospitals, so medical insurance fund management department of medical services as a third party to participate in the process of health care services could control medical capital flows. State hospitals should establish a system that medical cost accounting standards should be limited by medical insurance fund and there should be a single total cost control of medical inpatients. To health insurance policy, the principle of equitable benefits are: spending decisions income and income and expenditure balance.The forth part in this paper we proposed establishing a government compensation mechanism to ensure the public hospitals'public service nature. Cost estimation can be carried out to determine the right amount of compensation at all levels of public hospitals. Managements also can implement the hospital's internal operations compensation by increasing the price elasticity of high and new technology. To Emergency first-aid incidents and public health emergencies state hospitals should implement the compensation mechanism for the establishment of emergency response. These measures ensure that public hospitals can reflect the public good effect. At last, our paper concludes with encouraging non-public hospitals and public hospitals to compete on medical services. Our aim is to play through a competitive public hospitals to improve services, increase efficiency and promote the role of equity. These methods enable a richer means of solving the problem in medical services.
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