Research On Reform Of Public Hospitals’ Financial Performance Management

In recent years, public hospitals providing the people service in China have rapidly developed in various aspects, but due to the intense competition from foreign hospitals and domestic management theory, part of them increased the service fee, the drug cost and prolonged the length of hospital stay with a variety of ways to increase income. Therefore, in order to improve the hospital’s management, in 2009 the comprehensive reform of the medical and health industry in our country has started, it is named "new medical reform".Under the background of new medical reform, it became the problem for public hospitals to be solved immediately that how to strengthen their own management, enhance the core competitiveness and provide satisfactory medical service. Financial performance management was becoming more and more important to hospital managers, scientific and reasonable financial management can comprehensively analyze the financial situation of the hospital, the formation of decision-making, execution, supervision, and mutual restriction mechanism, and can improve the work ability and efficiency of medical staff, enhance the overall level of the hospitals. Due to various factors, China’s current financial performance of public hospital management system cannot meet people’s demand for medical services. Therefore, it was the inevitable trend of the hospital development to strengthen financial performance management mechanism reform of public hospitals in our country.In this article, it designs a new system of management with the study and analysis on application in public hospital performance management with studying traditional relevant financial theory. The article is divided into six chapters. Among them, the chapter 1, introduction. Chapter 2,overview of relevant financial theory. This chapter mainly introduces the basic framework of performance management, the definition and characteristics of public hospitals, public hospitals and the difference of financial management theory between the enterprise and public hospital; Chapter 3, reform of the public hospital financial system. By the analysis of the existing system, brings out the problems of the current system; Chapter 4, design of the new financial public hospital performance management. It designs new system of the financial performance management with the target, the budget management system and so on; In chapter 5, the application of new financial performance mechanism in the Q hospital. Through the analysis of the existing problems of the current mechanism in Q hospital, the new financial performance management system is applied to the specific hospital; Chapter 6, conclusion.