The Analysis Of Medical Service Market Under Asymmetric Information

With the introduction of the new healthcare reform plan in 2009, health system reform in China entered a new round of exploration. Solving the health care market information asymmetry and the resulting contradictions is the main topic of concern in theories and health services in the market. We special focus on the medical service market performance of"asymmetric information", the information asymmetry between doctors and patients, health care institutions and regulatory bodies. Medical services have the characteristics of knowledgeable professional and technical. Social division of labor and specialization led to the ability of both doctors and patients that access to information asymmetry, which is the main reason for patient information asymmetry. Besides the high cost of searching information, information delivery system of occlusion and the lack of information disclosure are the main reasons for information asymmetry.A high degree of asymmetry of information in China medical service market leads to a serious problem in reality. First, information asymmetry causes adverse selection and the performance of"Medicine for minor illnesses". Allocation of medical resources is distorted; adverse selection also leads to"expulsion of low-quality health care services to quality heath services"; second, the information asymmetry also leads to"moral hazard"problem, this not only undermined the balance of the medical service market has but also led to market inefficiencies. Doctors have the power of making decision and absolute control over the patients in the process of treating patients. Driven by interests, the doctor induced patients to"large prescription, open expensive medicine, an additional check items", resulting in excessive medical treatment, eventually leading to a social issue----"difficult and expensive to see the doctors". In order to analyze and solve practical problems, I use game theory to construct game model between the patient and the doctor. Under conditions of asymmetric information, an"induced demand"from medical side is the inevitable. This kind of over-treatment seriously damage to the interests of patients. The medical situation in the game with the regulatory authorities also largely affected the welfare of patients. If government regulators increase regulation and punishment, doctors will reduce the possibility of moral hazard, thus enhancing the regulation is an important issue to be resolved.Finally, this paper proposes the suggestions which solve the health care market information asymmetry. This is the focus of this article, hoping to provide some reference for the new health care reform. First, we shall establish a health care service system of public hospital-based, for-profit hospitals supplemented. In ensuring the health of the masses under the conditions, we should strengthen the process of market. Second, establishing a network information service platform is important. We should promote to establish a new public system of medical information, accelerating the development of telemedicine. This ensures the smooth flow of information distribution channels, especially for medical patients in remote areas. Third, the government should promote the pharmaceutical distribution system, which break from the roots"to drugs to support medical"situation, this also cut off the contact with medical side and pharmaceutical manufacturers. So moral hazard is prevented. Fourth, establishing a new profit model of hospitals and doctors pay system is practicable. We should appropriately increase the standard of medical fees, and establish a"medical expenses"as the center of the compensation mechanism. Fifth, the establishment of a participatory monitoring system for medical services is needed;we should establish a health care regulatory system which a government-led , health care industry associations and the majority of patients take part in. Sixth, I use the"America's new health care reform"as an example of the United States by levying a"healthcare tax"approach which separates the medical insurance companies and pharmaceutical manufacturers of contact, forming a virtuous cycle mechanism. This approach not only reduces the burden on businesses but also make the American people enjoy cheaper medical services. China's new health care reform should draw on this concept to explore the road of new health care reform. Seventh, Gaozhou model provide a guiding value and reference value for the reform of county hospitals. We should learn the concept of Gaozhou model. China's new health care reform should be based on"all the people can afford medical"as the core.