The Association Of Governmental Health Expenditure With The Nationalhealth

As China’s economy continues to develop and people’s living standards are well improved, the demands of good public health conditions and medical conditions are getting more and more intense. However, at the same time, China’s health care resources are relatively retarded. The disparities between urban and rural health care which brought contradictions between regions, is increasingly explicit. Coupled with the globalization and cross-national logistics resulting from the development of the world economy, the control and prevention of infectious diseases are facing more challenges. Under these new circumstances, how to effectively prevent and control diseases and how to invest health resources into the people’s public health and medical needs, is currently an urgent issue to address, which are supposed to draw the eyes of both domestic and foreign scholars.National health expenditure consists of three parts,namely government health expenditure,social health expenditure and private health expenditure. In this paper, the development of public health history of China was reviewed. And the size and structure of China’s public health expenditures are also described, mainly based on the government health expenditure. Based on the Grossman model, the analysis of the relationship between China’s public health expenditure and the national health are conducted. The results revealed that only economic development will not definitely bring increased national health, that the proportion of government health expenditure was continuously going down and the structure was also not proper, that government health expenditure plays an important role in improving national health when compared with private health expenditure, and that there is a great disparity between urban and rural area in China. And finally, suggestions on public policies to improve national health and to optimize public health expenditure are proposed.