Study On Legal Regulation Of Operational Behavior Of Public Hospitals In China

Public hospitals as nonprofit organizations to provide basic services for the mass, have been playing a key role to ensure fair healthy opportunity to the people. But because of the market-oriented medical reform, the public hospitals are pushed to the market. Facing the market economy and the reducing of the government financial investment, the public hospitals have to start the for-profit behavior to maintain the normal operation. But in order to gain the interests, the public hospitals are far from to the welfare purposes. The government as the direct managers, hopes to be able to ease the pressure of financial investment through the profit-seeking behavior by the hospitals. The doctors are willing to adopt the inducing service to the patients. And the patients have become the victims of excessive profit-seeking behavior. How we can control the profit-seeking behavior through the law to keep it in a relatively safe scale is the important thing we have to resolve. Although in practice, the government has realized the reform of public hospitals from the Separating Management and internal governance in order to find an effective way for the reform to correct the behavior of mission-drift, it has limited success.Social enterprise, as the new innovative organizations which are used to solve social problems formed by the lack of financial investment, is playing an important role. Social enterprises between the profit and non-profit organizations can fight for interests and put most of profits in their development without distribution. The public hospitals can just learn from social enterprises to prevent the excessive profit-seeking behavior.We can learn the operating mechanism of the CIC, which is the representative of social enterprises in UK. We must recognize the legal status of the social enterprise. Under the direct of the principal-agent theory, the stakeholder theory and institutional theory, we must achieve a proper allocation of property rights and allow the stakeholders to attend the hospital governance. We also need to establish the external oversight mechanisms which are under the health administrative departments, such as the external supervisor, the community interests report system. And by playing the advantage of the financial investment control and taxes, the anomie phenomenon will be prevented.