The Changes And Remodeling Of Incentive And Supervisory Mechanism On The Rural Doctors

The rural cooperative medical care system is one of the most important systems that developed from the practice and changed a lot from time to time in China. Rural doctors play a key role in our country's medical service network for grassroots, therefore we must attach great importance to this group. In the new cooperative medical care system which is very different from the old one, the government signs the contract with the rural doctors, purchases their service, and develops a principal-agent relationship with them. The rural doctors, as one of the producers of the rural public health service, face the government and the patients. In order to overcome the potential moral risks, the principal must motivate and supervise the agent. In this way, the agent may play a better role in the rural public health service system. But now, because of the improper incentive and supervisory mechanism, it brings much problems for the rural doctors, for example: the hard work, the low income, no insurance, the high risk, the strict rules, no backups and so on.Through the make a comparison of the rural doctors' characteristic between the old and new rural cooperative medical care systems, we can analysis incentive and supervisory mechanism. We find out that the new incentive and supervisory mechanism can not work,to a great extent, is because the relationship among the government, the rural and the farmer is not well-handled. And it caused by giving up the power of the village. In this paper, we discuss on that how to motivate and supervise on the rural doctors, not only give full play to the initiative, but also constraint their inappropriate behaviors. At the same time, we focus on how to gain more benefits for the government and to give the farmers more convenient and high quality of medical health services. We try to find out successful experience from the old cooperative medical system, take advantages of the rural societyrural doctors-government framework, and remodel the incentive and supervisory system which can overcome the drawbacks of principal-agent relationship and let the rural doctors play a better role.