Costing Financial Compensation Policy Based On Public Hospitals

In order to adapt to the economic reform and improve medical care standards, Chinese government began a health reform since reform and opening up. The reform has achieved some success, but also caused many problems such as high medical costs and over burdens due to the lack of financial compensation. At present, the standard of the government financial subsidies for public hospitals is still followed as the past, computing hospital's beds and staff then makes the budget. It doesn't consider all of the hospital's cost as a unified accounting. So the government has no exact standard to adjusted medical care prices and funding.The current compensation of public hospital has three main methods:The first is financial compensation. The second is medical services income and the third is coming from drug selling. Financial compensation means the government provides hospitals with one-time investment and budget subsidies, mainly for policy loss. The Financial compensation can control the society medical fees, at the same time, it can make the low-income people be more equitable access to basic medical services.One of the conditions that the government financial compensation mechanisms can work efficiently for the public hospitals is hospitals must carry out the medical cost accounting under the government guidance and supervision. In other words, the government must make clear enough about the hospital's revenue, loss, which projects are profitable and which projects losses. And how of the government should deal with the compensation, especially for the policy losses subsidies.This study tries to analysis the typical situation and status of public hospitals, understands the practical effects of the current compensation policy, finds out the problems, and gives the policies suggestion for adjusting and improving the public hospital compensation mechanism.