On Governance And Regulation Of Medical Service Market

Reform of medical sector, established with the consequences resulting from the multifaceted nature of economy, society and history, is a systematic project. However, when it comes to the medical sector reform, we cannot ignore the microeconomic foundation and must value, from an economic point of view, the analysis and research of medical sector and the field of market trade, examining the economic efficiency of medical service and providing macroeconomic aim, system and policy with material basis and support. Economic principle is an important one under the reality of scarce resources, and how to obtain efficiency is an important subject to study in economics under certain external environment.Medical service, due to its industry nature and uniqueness of its products and services, is different from general market and has inherent shortcomings of market transactions. Therefore, it is necessary to explore the fundamental nature of the problem, straighten out the scope and characteristics of the inherent relationship, and in turn find ways and means. The industry nature of medical service and characteristic of the asymmetric information and the quality uncertainty of product make supply side in a strong monopoly position and demand side in a disadvantaged position, which constrains the market transaction behavior and causes the welfare loss. Meanwhile, medical services industry monopoly and the insufficiency and the distortion of market competitive incentive of the medical service organization result in the bad market performance, and multiply corrupt acts of benefit chain in medical system. The efficiency problem of medical service market is influenced or determined by system design, governance and regulation of market, and the corresponding market structure and market conduct, and is manifested in the transaction conduct of products and services.This study regards medical service industry as a target, and using basic tools of economics theory and adopting methods of analysis and synthesis, examines and studies competition and transaction on the medical service market, presents thinking, ways and approaches to solve the problem. Focusing on micro-transactions on the market of medical services, this paper analyses the transactions properties of medical service under the conditions of asymmetric information and uncertain quality, and the resulting problems of contradiction between supply and demand; based on the relationship between the government and the hospital, analyses the incentive problem of single hospital as market player, and the competitive problems each other; and discusses how to solve the problem of market failure through the two main lines of "micro-regulation" and "market governance", which, with the improvement of medical service, produces the positive external effect on the entire medical system. In order to improve transaction efficiency, performance and the level of competition in the market, oppose to low-efficient regulation, lack of competition, uncertainty of product and corruption of the supply chain system on medical service market, it is necessary to establish a integrated solutions of market governance and government regulation centered on regulation reform, introducing competition, improving doctor-patient relationship, information sharing mechanism.