Research On Countermeasures Of Illegal Pricing Behavior In Private Medical Institution

With the development of China economy and people’s living standard, there has been a dramatic increase on demand of medical service. Private medical institution appeared in the national medical system reform frame as new element. It grows mature, breaking the monopoly of current public medical institutions, and making up the rigid defection of the operation mechanism in public medical institutions. The private medical institution stands for the presence of private economy in the medical industry. It is an important part of medical service system. Private medical institution has positive impact on the medical system reform and shows the progress of social development. It went through the development path from nothing to something, from small to big, and has been involved in more and more medical fields. Relevant government supervision departments aslo went through the same progress of involvement and regulation. But problems such as illegal pricing behavior have been spotted during its development. It raised new request on the price supervision and on administrative management to private medical institution.The private medical institutions in China are mainly invested by private capital. There are two types of investment which is profitable and non profitable. Profitable investment is of the main types of private medical institution. The governmental control is in loose end. The pricing method of private medical service is self controlled by the private medical service institution. The return can be used as capital return so it has the indisputable character of profit seeking. Meanwhile the medical service is in quasi-public service area, the medical service from private medical institution is also with certain public service features. The loose control from government does not mean to abandon the control. The government shall regulate the illegal pricing problems of the private medical institutions. But there are still some rooms to improve the government control on this. The paper studies Wuxi price control practice of private medical institution and of its illegal pricing behavior, analyzes the problems and reasons, and raises proposals accordingly. By analyzing definition of medical service and its price, private medical institution, government responsibilities, government function and etc. and combining the theory research of market failure, government regulation, privatization and etc, the article describes the policy development and existing problems of current price control on private medical institutions and practice in other cities (Shanghai). It mainly introduces the detailed operation and control practice on Wuxi private medical institution, analyzes its major illegal pricing behavior, elaborates the reason by case study of Wuxi private medical institution pricing control, and discusses the problems in pricing control from the three parties of private medical institution, supervision department and society. Based on the research, this article draws a conclusion that the reasons for problems such as illegal pricing behavior, poor image on integrity, and difficulty in punishment are mainly relating to its own defection, lack of regulation and price control, and low social recognition. Therefore, the author raises three suggestions on policy of private medical institution pricing control which are to complete the law, regulation and pricing policy, to solidly execute the pricing control responsibilities and to strengthen the social price monitoring system.