Construction Of The Fiscal Policy On China's Rural Health System

The value of health, as the first aim of the human development, not only has intrinsic value, but also plays an important role in many dimensionalities, especially in advancing the economic development. Health service, as means of insuring the human's health, is significant in promoting economy and developing society persistently, steadily and harmoniously. To build the rural health service system is an important part of the whole country's, and is also an indispensable content in building a new socialist countryside. In the 16^th National Party Congress, "markedly improving the quality of nation's health and forming a relatively complete health system" became one of the goals of building a well-off society. In the congress, "constructing the medical care and health service system to meet the requirements of the new situation, improving the rural medical and health conditions, and raising the standard of medical care" also became a policy goal. Actually, long ago, Mao Zedong pointed out, "if the so-called national health service deviates from the 36 million farmers, most of the work is meaningless." Then, he instructed that put the focus of medical care and health service into the urban areas.Before the 1980s, the foundation and development of Chinese rural health service system, which symbolized by Cooperative Medical System and the Network of Three Level Prevention & Medical Care, had been regarded as apotheosis through public supports in low income by many economists and international community.But after the 1980s, there was a gigantic change in property right system and economic system in the countryside. The distribution and redistribution of the rights and interests in farmers, and the establishment and improvement of health service system had aroused widespread concern in the country and the world. How to build a rural health reserve system which is compatible with the socialist market economy? How to eliminate the risks in medical care and maintain market and social security? They have both faced with theoretical and practical trails and challenges. However, we have not been able to make a balanced choice between fairness and efficiency. With the system's transition, economic development and the increase in income, China's rural health service regraded. More than 20 years, the fanners who are accounting 80% of China's total population, solve medical problems mainly through familial or relational support. The suffering of the majority rural residents is not the lack of medical treatment decades ago, but the inconvenience end expensiveness in medical care. Especially, vicious circle, which represent the poverty caused by illness, returning to the poverty because of disease, and interact between the poverty and illness, is emergent, and re-draw the community's attention and concern. If we allowed this problem to spread and do not control it efficiently or solve it well, the consequences may be far more than the farmers' health and the development of health service, they may have been, or be being, and will continue to threaten the national interests and economic security, even shake the foundation of socialism.The grim realities and challenges are the motive for writing this paper. Based on health economics and public finance, this paper analyzes the China's rural health service situation through historical change, international comparisons, and empirical analysis. In allusion to these existing problems, we must take the efficient financial policies and corresponding measures.This paper is divided into five sections. The main structure is as followed:The foreword: this section explained the necessity and urgency of the issue, and then reviewed the research in rural health service fields. This part summarized the domestic and foreign scholars' definition in medical and healthy products in recent years; the supply of rural health service; the demand of rural health service; the governmental intervention and financial support in rural health service; the New-type Rural Cooperative Medical System. All the above laid the groundwork for this research.The first section: the economic analysis of government intervention in rural health service. On the basis of analyzing the characteristics of health care market and defining and classifying the rural health products, this section analyzed the supply and demand of rural health service, the theory of the government intervention, and the importance of fiscal policies in rural health service.The second section: the institution vicissitude and reality of China's rural health service. Firstly, this part recalled the development process of China's rural health service, and then analyzed this historical vicissitude through the institution economics. Lastly, under the macro history backdrop, this section inspected the reality of China's rural health service from the supply and demand angles.The third section: the international experiences and use for reference in developing rural health service. Through inspecting the rural health service situations of three developed countries (the US, Germany, and Japan) and three developing countries (India, Thailand, and Brazil), this part drew the experiences: the rural health service can not develop without the fiscal support; to establish a medical payment system with internal incentive; to promote the reform and innovation of health service system timely. These valuable experiences provide a useful inspiration for the establishment of China's rural health service.The fourth section: the financial Countermeasures of building China's rural health system. At first, the section defined the duties of government in rural health system. On this basis, some measures were brought forward: to build up public decision-making mechanism in rural medical and healthy products; to improve the fiscal input policies, including increasing the financial input in rural health, and optimizing the financial structure of health resources; to improve the financial system in rural health service, including to optimize the New-type Rural Cooperative Medical System, to improve the Network of Three Level Prevention & Medical Care, to establish special transfer payments for rural health service, and to add reserve in emergency.The fifth section: relevant measures. It is a wide range of medical and healthy field, which can not develop well only with the support of finance. Therefore, the laws, human capital, public health education and income distribution system should be completed simultaneously.