Analysis Of Rise And Decline Of The Rural Cooperative Medical System Based On The Institutional Embeddedness Perspective

China’s rural cooperative medical system got into trouble for a time since the last century80s and90s, villagers’participatation willingness and the recognition of the system itself universally presented depressed state. It is worth pondering that cooperative medical care system’s response for chinese rural fundamental medical security demand showed better support significance in a quite long period. Cooperative medical care system more than50years of development history in China, we find that, the cooperative medical system is running well for thirty years, and after that, this system basically runned in downhill, the new rural cooperative medical system is gradually changed the situation until2003. A highly experiential view points out that insurance status and economic development should be highly correlated, low economic level results in insurance status of nature; conversely, higher economic level helps have a raise in insurance demand and insurance rate. But rural cooperative medical system in China is puzzling and shows the opposite view for nearly half a century. for the first thirty years since the founding, the economic level is relatively backward, but the cooperative medical system operation shows a good condition; but compared with high economic level, the cooperative medical system operation is nearly on the brink of collapse more than twenty years since market-oriented reform. The great paradox of reflection constitutes an original motive of the study.On the basis of overall grasp for the history of the rural cooperative medical care, this article, to the point of a village in Xiyang county in Shanxi, uses the embedded theory of new institutionalism, sets forth respectively the embedded external environment in the period of the planned economy, market-oriented reform and after2003and analyzes external factors in the process of cooperative medical system in operation. Through the study, we found that the external environment is the radical cause of the rise and fall of cooperative medical system. Companied with the change of system, social policy should make appropriate adjustments to be sustainable.