Regulation And Reform Of The Medical Service In China: Perspective From Mechanism Design

With the deepening of economic system reform, medical system reform must keep pace with economic reform. Whether medical reform can succeed or not depends on rationality of mechanism design and path selection. The systematic reform including system design, industry regulation and competition introduction is very important for efficiency improvement of medical service market. In the first this paper inquires into the concrete system condition improving social welfare according to analysis of the research conclusions abroad and the Chinese reality. Secondly, it researches on how to construct these institutions by means of the case. Applying adverse selection model to analyze USO and entry regulation under comparative competition is the focus of this paper. The paper takes the lead in China to analyze the regulation problems on medical service industry in China by means of mechanism design.