| In recent years, the field of medical care has been of great concerns, because the ordinary people are lack of adequate and affordable medical services. since the reform in the area of health care has been no breakthrough, the problem still exists. In China, there has been a lot of research in the field of health care, including many papers about the cost of health care. But because of often from the accounting perspective, and the lack of economic analysis, it often fails to provide an effective proposal, since 2000, many measures have been done by the government in the field of health care in order to solving problems in this area; but whether there are effects, we must conduct a comprehensive analysis to come to a conclusion. This paper attempts to look at the growth of our health care costs from 2000 to 2005, from the health economics perspective comprehensive, in light of social and economic changes, and to provide useful analysis.This paper is structured as follows: the first chapter, introduction; Chapter II, through reviewing on the related health economics theories, I try to identify the main factors which can affecting the cost of health care and its affecting channels; Chapter III, firstly, by analyzing the cost of health care through a range of data from 2000 to 2005, I attempt to identify the existing problems; Then, analyzing changes of major factors in the same period; Finally, in accordance with the relevant health economics theory, analyzing the relationship between the changes in the relevant factors and the changes of the cost of health care. Chapter IV, Conclusions.This analysis shows that from 2000 to 2005, according to the increase of population, the aging of the population, and the rising of level of urbanization, and the growth of people's income and medical insurance coverage of the population, health care demand grew fast; Meanwhile, the supply of health care is stagnant, and the motives and restrictive conditions of medical institutions and doctors have no obvious changes, as a result, doctors induced demand continues obvious. Thus because the supply of medical care increase relatively less, the increase of the cost of per treatment seems to be the main factor in the increase of cost of medical care; while the per treatment cost has serious wastes, due to the induce of doctors, and there is no evidence that can show the significant improvement in the quality of treatment. Meanwhile, largely due to the moderate gap between the speed of income growth in urban and rural residents, farmers' situation has been deteriorating. |