Study Of The Health Care System Efficiency

China's health system reform was not successful in general according to the cooperative study report in 2005 from the State Council Development Research Center and the World Health Organization, which was presented after several years'health system reform in China. People always feel that medical and health services are inadequate and overly expensive. The key to this problem, to make people pleased with China's medical and health services, is to start from the health system, and make it an efficient and fair system by health system reform.This paper focuses on the efficiency of health system. How to estimate the efficiency of the health system, especially how to estimate in a better way, is studied in this paper. It tries something new, and provides a new idea about the study on efficiency aspect of medical and health services by introducing panel data model based on the WHO's methods, which is different from domestic studies depending on DEA too much in this field.By analyzing ten years'data from 1998 to 2007 in 31 districts, this paper finds that per capita health expenditure, number of beds per thousand people, number of doctors per thousand people, education level, income inequality, employment and urbanization are all have negligible influences on health though the influence of income inequality is comparatively small. After ranking these districts by their health system efficiency according to the model regression results, it is easy to find that the efficiency of eastern districts is higher than that of the middle and western ones, and the efficiency of western districts is the lowest.Model improvement and further research directions are put forward, and advices and suggestions are also given according to the study and its findings, in order to promote the health system reform and improve people's health.