Research On The Demand-side Subsidy Mechanism Of Nursing House

The trend of aging population is irreversible with the characteristics of fasting and aging. Continued weakening of family support functions increases the demand for nursing house, however, a large mount of old people who can not look after themselves can not meet the demand due to economic reasons. The traditional way of compensation including setting up nursing house directly and supply-side compensation to the individually-runned elderly-caring agencies aggravates the dislocation of such services, resulting in uneven redistribution of social resources. Based on the analysis of the related theories and practical needs of the aged, this paper proposes a demand-side compensatoin mechanism, which has realistic significance to the optimization of resource allocation and social justice.Firstly this paper analyzes the defect of traditional compensation mechanism, theoretical basis of compensation mechanism for the elderly-caring agencies and realistic necessity of establishing a demand-side compensation mechanism. Secondly, based on the the classification of potential demanders and analysise of the financial responsibility of the government, this paper proposes a new mechanism which suggests to subsidize the special-care recipients and the aged who are lack of the capacity to pay and take care of themselves, furthermore, it recommends to give different levels of financial subsidies according to the number of their descendants. After that, it takes the example of Zhejiang Province for a case study on the demand-side compensatin mechanism and gets the following conclusions:full amount of subsidies to the special-cared recipients and the aged without income, labor ability or any legal dependents; deficiency payments to the aged who cannot reach the minimum standard of living and cannot take care of themselves; and a higher level of subsidies to the severe disabled old persons according to the disability rating. Then, the paper makes some prediction to the actual demand for the demand-side compensation mechanism and the financial input for the next 20 years. Finally, it suggests to build a strict access mechanism and dynamical management of the relevant factors so as to carry out such compensation mechanism successfully.