Privatization Reform On Public Medical Institutions In China

Public medical institutions are the main body in China's public health, hi 2004, the national public hospitals account for above 96% of the total hospitals. With the establishment and improvement of the socialist market economy system, this medical system with public ownership as the main form and public medical institutions as dominant position could not meet the needs of socialist market economy development and meet people's increasing medical demand.It is obvious that some serious problems exist in public medical institutions' operation mechanism such as serious marketization tendency, the nature of public welfare desalinated, and the populace's intense reaction to the problems that "it is difficult to see the doctor ", "it is costly to see a doctor". Therefore, it is urgent to carry on the reform to the present medical health system and put forth efforts to solve the problems in the operation mechanism and system that public medical institutions have borne on. It is also significant to implement the scientific concept of development and to construct the socialistic harmonious society.Since the end of the 1970's, a tide of privatization has surged up all around the world which enabled privatization to become the mainstream of new public administration movement. At the same time, the theories on privatization also rapidly developed, of which Property Rights Theory, Principal-Agent Theory and Public Choice Theory have now become main theoretical basis for the privatization reform.In this paper, the author analyses privatization reform theories in some foreign countries as well as the existing models of privatization in China; expounds the validity and value orientation of privatization of public medical institutions, that is, the privatization reform have to adhere to the basic principle of giving priority to fairness with due consideration to efficiency, both of which should be compatibly developed and motivated.By comparative analysis and in the light of the realities of Chinese medical and health care, the paper proposes that "state owned, privately run" should be the optimal choice for the privatization on public medical institutions. The most remarkable...