Medical Services Pricing Mechanism In China

On April 6th 2009, the file of deepening the views of medical and health system reform," issued by the CPC Central Committee and State Council marks that the high-profile new medical reform started. The file has confirmed the aim of health care reform in the next three years. The subsequent eight measures on the medical system reform and instructions on specific measures which provide guidance for the medical reform were released. The health care system reforms will inevitably have a profound impact in the medical services industry in China. The health care industry is a very special industry where there exist information asymmetry and market failure. The medical providers of medical system also determine the demand for medical service. Under the condition of integration of medicine and hospital, the growth of the price in medical services is the main reason for the phenomenon that people can't afford for medical treatment and the price.Under this condition, according to China's health care system development and comparative analysis of the health care price system in foreign countries, we tried to analysis the specific factors that influence the price of health care system through the utilization of public policy theory and western economics. Furthermore, we tried to explain the role of government and market in pricing the health care service. Finally, we suggested that the government should take a variety of comprehensive measures to promote China's medical service price system reform and long-term development and to inhibit the increase of medical service price and improve the welfare of our nation.