Factor Analysis And Control Strategy Of Growth In Health Care Costs

Since the reform and opening up, the market economic system gradually replacedthe previous planned economy system, the national economy has achieved greatdevelopment, people’s living standard has been greatly improved. At the same time, ourgovernment deeply reformed the existing health care system: the basic medical insurancesystem for urban workers and urban residents in the rural areas, the new type of ruralcooperative medical care system has been established in cities and towns, coverage isexpanding year by year; expanding the number and size of the medical institutions,medical service practitioners groups are growing; drug safety, production and supervisionis also strengthening, and effectively protect the patient’s medical needs. But we also seethat our current health care system there are a lot of issues, one of the prominent problemis that the high medical costs. Community, the "astronomical medical expenses” relatedevents appeared frequently, the cases of giving up treatment because of the high medicalcosts also appear, expensive medical treatment has become the general feeling ofeveryone, has become a hot topic in contemporary society.The analysis of the rapid growth of medical costs in the cause and proposed solutionto the problem is the purpose of the writing of this article. The author draws on pastscholars in the study of the problems associated with the growth of medical costs analysis,and all the factors that are classified as demand and supply. Demand-side factorsdiscussed in this article are: economic growth, an aging population, urbanization andhealth insurance coverage; Demand-side factors are medical scale, advances in medicaltechnology, government investment and physician-induced demand. First, authoranalysis both demand and supply factors theoretically, analysis of the relationshipsbetween the various factors and medical costs, followed by various factors correspondingvariables and with the1980-2010statistical data on health care costs with variableempirical analysis. Empirical analysis includes two parts: first, the single factor analysisof the growth in health care costs through the establishment of an econometric model toanalyze the long-term and short-term relationship between medical costs and economicgrowth; multivariate analysis, analyze the long-term and short-term relationship between medical costs and all variables. The main conclusions of empirical analysis:(1) in longterm, economic growth, an aging population, advances in medical technology andurbanization are major factors in promoting the growth of China’s medical expenses;(2)in the long term, population aging is the most impacted factor;(3) in the short term,economic growth, advances in medical technology and an aging population are the mainfactors to affect the medical costs of short-term changes, the aging of the population isalso the greatest impact factor. Finally summarizes the advanced experience of the typicalforeign countries in controlling the rapid growth of the medical expenses and therevelation, Strategies and recommendations of controlling rapid rise in health care costs.