Public Medical Institutions, Financing Analysis

Health problem is becoming a social hotspot with the development of society and people's living standard. As a consequence, the construction of medical institutions which safeguard people's health turns into an important issue around the world. Therefore, it is very significant to probe the construction of public medical institutions.This thesis suggests that the key to the development of public medical institutions is fund. Fund insufficiency has become the "bottleneck" which is the most important problem to be solved in the development of public medical institutions. And financing is an effective method to deal with the capital problem.The thesis first analyzes the financing issue of public medical institutions with economical theories. As organizations offering quasi public services, public medical institutions should be financed by both government and the market. Based on theoretical researches, the thesis makes an empirical probe into the financing of public medical institutions. It describes the current status of public medical institutions in China through analyzing their capital structure, financing structure, financing adaptability, and financing sources. It also points out the causes of financing problems faced by public medical institutions from some interior factors such as the lack of understanding on financing, information dissymmetry, and low management efficiency etc, and from some exterior factors such as the lagging medical managing system, blurry property right, nonstandard market environment, and incomplete reformation policy of medical institutions etc.Based on advanced financing practice by public medical institutions in U.S., Germany, U.K., Hong Kong and Singapore, this thesis puts forward the reform plan related to the financing of Chinese public medical institutions. It asserts that according to the demands of society harmonious development, the development scale of public medical institutions should be correspondent with the whole economy and public medical system;the services offered by these institutions should be correspondent with the medical needs of the people. In the meanwhile, the government should plan the overall arrangement of the institutions as a whole in order to avoid wasting investment and resources. The precondition of the development of public medical institutions is to change the method of appropriating funds from government, like substitutingappropriating funds for investing capital to increase efficiency. As an interaction between operators and investors, financing must be carried out within a more distinct property right system and the reformation of property right system is imperative under this situation. The thesis also gives solutions such as fostering human resources market and building orderly medical market competition environment by supervising the competition and controlling the scale of loan and avoiding the risk of medical institutions effectively by launching medical institution bond and lottery and discount loan the government, increasing the channels of financing to change the plodding financing method, providing positive law protection and benefits for both of the operator and investor by solving the problems of converse choice and moral risk owing to information dissymmetry.In the end, as to our general practice of "thinking highly of investing while paying insufficient attention to appraisal" in China, this thesis discusses how to build and make perfect capital performance measurement system of Chinese public medical institutions in order to make better use of the capital, considering the current practice of focusing too much on investment and neglecting the performance measurement. By setting up the capital performance measurement system, public medical institutions in China could have a better understanding of both opportunities and challenges they meet, increase their competitive ability, and improve their running efficiency.