A Study On The Influence Mechanism Of Services Quality Due To The Competition Of China’s Hospitals

Health services, a certain public welfare benefits and related to the health of people,is a livelihood issue bears on the well-being of our country. The development of theindustry is a worldwide problem, health services around the world are continuinginstitutional reforms. With the rapid development of economic and the improve ofpeople’s living standard, demand for medical services is increased significantly, but thesupply of medical services can not be synchronized to meet the growing demand, andthe misallocation of resources lead to the problem of "difficult and expensive" in ourcountry is worsening. Public hospitals and private hospitals were also encountereddevelopment bottleneck. Therefore, in order to make people enjoy convenient andeffective health services, the Government should take relevant measures to improve themarket structure of the medical services, and regulate competition in the health servicesmarket. The State encourages investment in private hospitals by social capital held morethan ten years of time, and the reality is that the number of private hospitals actuallyincreased significantly, but its effect is not synchronized with the development.December3,2010, the State Council formally issued "further encourage and guidesocial capital to held medical opinion", which will further promote the implementationof the development of private hospitals. the main content of this paper is to expandedrole in promoting a more systematic study in increase the supply of private hospitals forimproving the quality of public health services. This paper will provide two categoriesin the main medical services: private hospitals which are non-governmental invest inand public hospitals which are government-run. China’s private hospitals are rapiddevelopment in recent years, whether they would have a beneficial impact on quality ofcare by increasing the number of private hospitals? Why did not achieve the desiredeffect? what policy implications to the current health system reform?In this paper, industrial organization, public economics and the medical servicesindustry is regard as the theoretical foundation, around the course of public hospitalsand private hospitals’ development、present situation and characteristics, and introducesthe Salop which is circular city model in medical services industry study, to analysis therelationship in quantity and quality of private hospitals and public hospitals medicalservices. And select typical urban to do the empirical analysis, which is to provide further evidence of the impact of the results between the two, and thus make relevantpolicy recommendations.First of all, the theory of industrial organization, public economics, public productsand other related theories are used to analysis the nature of service products, medicalservice, product and industry characteristics and market structure. There has the specialproperty of its own excepts the general characteristics from this analysis. In some extent,provide an important theoretical foundation for the particularity of the medical servicemarket.Secondly, draws out the Salop model, and applies it to research the medical serviceindustry, analysis of the relationship between the increase of private hospitals’ numberand medical service quality. There is also make the deduced argument on traffic costand coverage rate of the two influence factors. Then choose the most typical of medicalservice market in Suqian City, Jiangsu province of representative, and launched asystematic comparative study of the results.Finally, in view of the above research, find out the existing problems of Chinesemedical service markets and its causes, and put forward the corresponding policymeaning, such as planning reasonable hospital layout, and allocation of medicalresources; specification of relevant policies to ensure the establishment of an effectivemedical competition; encourage doctors to multi point in practice, promoting the flowof talent resources.This innovation of this paper is that it is the first time introduces the number ofprivate hospitals as a key variable in the salop model study of the competitive effects ofpublic hospitals and private hospitals. According to China’s national conditions andcharacteristics of the health care market, the paper is modeling the basic theory.Analysis the health care market characteristics, the benefit is, on the one hand, helpsdeepen the theoretical foundation, one the other hand, the new unique researchperspective on study China’s medical services market.