Research On The Effects Of Introducing Private Capital On The Performance Of Medical Service Industry

Health is closely linked with our each person, development of medical services is accompanied by the pace of reform and progress. Because of the professional and the particularity of the medical market, there exists market failure, the government regulation is not in place, the medical service supply can’t satisfy people’s needs and other phenomena. Therefore, using drugs to support medical phenomena have a certain market, "medical treatment is difficult, expensive medical treatment" has become a serious social problem, rising medical costs increased individual economic burden, illness, medical disputes have become a focus of attention. In current medical service market, public hospitals in our country is the main body of medical supplies, the medical cost plays a key role to control the medical expenses. In the face of such a medical condition, after the discussion and study of multiple gestation, a new round of health care reform has begun, in 2009 April announced the new medical reform program "CPC Central Committee and State Council" on the deepening medical and health system reform, the views put forward clearly "strengthening the government in basic medical and health system of responsibility" principle; 2010, the state has issued the "on the further encourage and guide social capital held in medical institutions.". The opinion points out clearly, support social capital held by non-profit medical institutions, to provide basic medical and health services. At the same time, the national development and Reform Commission also pointed out:"all laws and regulations do not expressly prohibited areas, will be open to the social capital; usually open to local capital, are open to foreign capital, private capital to enter the medical industry to accelerate the pace of".This paper first discusses the influence factors of medical expenses and medical quality from the property rights theory and competition theory, describes the influence of ownership arrangement for the medical expense control and the quality of health care, the role of the market competition for control of medical costs and quality of care, and the effects of medical reform on Performance of medical service industry analysis. Focusing on the effects of introducing private capital on the performance of medical service industry. With the deepening of the medical reform, private capital involved in the medical service industry, the increase in medical supply at the same time, also promoted the market competition, improve the industry performance. Private capital enters, the ownership and competition of medical market, proposed in this foundation to China new medical health system reform proposals, should further reform of public hospitals, improve staff quality, reduce the medical cost, improving medical quality, to further expand the scope of market access to private capital. The development, encouraging all kinds of social capital to participate in the investment profit and non-profit medical institutions, the medical service market and fair competition in the health, healthy, orderly environment, improve the medical service level of performance.