Reviewing the reform course of Chinese public hospitals in retrospect and analyze the reform policies, the paper argues that the deep reasons for the rising costs medical care and inefficiency in resource distribution are insufficient government subsidies, the non- standard market, distorted price policy as well as the incapability of government administration. Moreover, the present governing structure is the main reason for rising costs and inefficiency in public hospitals. The varied functions of owners of public hospitals, the lack of means of evaluating performance of public hospitals, and the lack of effective encouraging and binding mechanisms for hospital directors result in the ineffective internal management of public hospitals; on the other hand, the small- scale social health insurance and the inefficient market caused by the slow development of community health service lead to ineffective external management. Hence, the author claims that the reform on autonomy of public hospitals must be standardized in all aspects.
Jiangsu Social Sciences