The Policy Effects Of Drug And Service Price Change Of Public Hospitals In China On The Social Medical Insurance

The present revenue sources of public hospitals in our country has generated many social problems, mainly from drug sales not medical services. In order to get rid of this phenomenon, the government has taken some measures to reform this compensation mechanism In recent years. The main move is to abolish the drug sale rule that allows public hospitals to sale drugs at the price more about 15% than buying prices .At the same time, by adjusting the price of some services and financial assistance to compensation the loss of drug revenues. The adjustment in the prices will change the structure price between drug and service, which has great impact on related bodies, especially medical care fund and individual medical expenditure.Under this background, this paper mainly discusses he policy effects of drug and medical service prices adjustment on medical care fund and individual medical expenditure. The first part is to analyze the route how this policy will affect total medical expenditure, then the medical fund and individual burden. The second part is an empirical analysis of one area. The third part is to explore the reasons according the empirical results with some economics theories.At the end of this paper, we put forward some recommendations on how to solve the possible issues of this policy, including reforming the way the medical insurance fund pays the hospitals, strengthening the supervision on the behavior of doctors, synchronizing other reform in the health system and adding financial assistance to public hospitals.