The Application Of Value Chain Theory In The Hospital’s Cost Control

With the continuous deepening of the reform of medical care system, and the increasingly competition of the medical market, survival and development of the hospital is facing increasing challenges. Faced with the dual pressures of development inside and outside the hospital, we must strengthen the control of the cost of hospital operation and management. Hospital operation is a process of providing services from hospital to patients, and also a process of value formation, and also a process of cost formation. The hospital needs from its own, to constantly update the service concept, to strengthen the market concepts and marketing awareness, to make full use of existing health resources, and also patient-centered, directed by market demand, to develop products of medical services, to build a sound value chain, and to provide better medical services with a relatively lower cost. The hospital must carefully analyze and optimize hospital value chain, and implement sophisticated management, so as to improve its operational efficiency, add its value, continuously improve its efficiency, and enhance its competitiveness.This paper, with the application of value chain theory in the management of hospital cost as the research topic, describes the status of the medical industry, based on reviewing literature and related research results domestic and abroad, by the use of methods such as field research, quantitative analysis and qualitative analysis, combined the author’s actually work condition, carefully dissects the cost management status and the existing problems in PA Hospital, systematically analyzes its value chain, and at last on perspective of value chain and current situation and problems of the cost management in this hospital, makes recommendations on how to optimize this hospital’s value chain. Thereby, in the pattern of PA Hospital’s value chain management, its operation cost is reduced, the patient’s satisfaction is improved, the hospital’s brand image is enhanced, and its social public trustworthiness is improved maximumly.