Improvement Of Hospital Pay System, To Reduce Excessive Medical Services

"Large prescription and expensive to see a doctor" has been the important factor restricting the improvement of the health level in China. The main reason is the doctors providing the excessive medical service to patient. The occurance of such excessie medical service is closely related to the in-rational salary systment in China. Under this background, this study focuses on analyzing development history of the salary system, exploring how to establish a proper salary mechanism so as to reduce the excessive treatment and speed up the development of hospital.First of ally, the hospital's salary system reform stages are introduced by looking into the development history of China's hosptial salary system. Then features of medial service market are analyzed by using Information Asymmetry Theory, pointing out that in the monopoly medical service market, there is asymmetry information between the doctors and patients, thus offering the preconditions for the doctors to induce patients for excess consumption. Then, the basic concepts of optimizing the hospital salary system is proposed by considering the reducing excessive medical service and establishing reasonable hospital salary system. Finally, the post performance salary and annual salary system are analyzed in details; which discusses the scope of application, basic principle and basic system etc. of the two payment systems..Main conclusion: (1) The asymmetric information between doctors and pateints is the key reason to the excess medical servcice. The reform of the salary system will eliminate the induced consumption effectly. (2) The annual salary and the post performance salary systems can eliminate the induced consumption and promote the development of the hospital, as these payment systems can, to some extent, cut off the directly interest relationship linked to the doctors from medicine and large-scale medical check.The main innovation is the proposal of "the post performance salary and the annual salary" which can achieve the dual-target of eliminating the induced medical service and improve the hospital development at the same time. The post performance salary can apply to the common and junior staff while the annual salary system can apply to the senior staff and the highly professional staff. The combination of these two salary systems can eliminate the excessive medical service and improve the development of the hospital together.