The Research On Finance Governance Of Public Hospitals In China

In our country, public hospital is state-financed medical institution for non-profit purposes that aiming at meeting social needs, providing medical and health care services to national people, also the risks of profits and losses are taken by government. With the development of economy and society, people have higher and higher requirements for medical health care services, the business scope and scale are extended wider and wider in the same time, which making the medical management more complex and difficult. Financial governance is a significant part of medical management, impacting on the perfection of governance system in hospital, also the allocation, check and balance of property rights. Strengthening financial governance is conducive to the management’s scientific decision-making, will improve working enthusiasm, regularize the financial management activities and raise the efficiency, so that ensuring the promotion of public hospitals. The financial governance study of public hospitals is late in getting started, a consensus has not been reached and practical activities are still at an exploration and try-out stage, a series of problems still exist. Therefore, there is still much research work we have to do.The article is based on current financial governance situation, which is question-oriented and with the goal of solving problems. According to the analysis of problems met in public hospitals’ financial governance, it combines with case study method, document analysis method and questionnaire method to analyze the reasons why the problems occur, it also offers methods and suggestions of solving problems with principal-agent theory, equity theory and stakeholder theory. The first part of article discusses the background, significance, design idea and design method of the subject, and then pulls predecessors together; it also organizes the theory and concepts used in research, which lays the theoretical foundation. According to questionnaire researching, it analyses the current situation of public hospitals’ financial governance and finds the significant reasons why the problems occur. It is the unclear property that leads to the unclear rights of stakeholders; it is lacking of corporation governance that leads to the function of financial governance cannot come into play, which makes the supervision and restriction mechanism existing in name only. It is lacking of scientific appraisal, encouragement and accountability mechanism that leads to the low efficiency. Then the third part is about the financial governance development history and current situation of British and American public hospital, it also states how we should use these advanced experience. In the final part is the research result of this article, the suggestions of how to improve the financial governance mechanism of public hospital. The suggestions contain launching the corporation governance reform in public hospital, building the owner-oriented and multi-agent-participation financial governance, improving the powerful supervision and restriction mechanism, building the scientific appraisal, encouragement and accountability mechanism. These suggestions just provide a reference for improving the financial governance mechanism.