Effects of regulation on large medical equipments: study of tertiary public hospitals in Zhejiang

Abstract

Large medical equipments feature complex technology, high investment and operational costs, bearing major impacts on medical expenses. Curbing overinvestment and excessive growth of such expenses at public hospitals hence becomes one of the government key goals in regulatory control for these equipments. Based on data of provincial hospitals in Zhejiang and core variants as regulatory measures for large medical equipments, the authors came to important findings. For example, when such influencing factors as the supplier and customer characteristics of provincial public hospitals, and the equipment investment and medical expenses of other public hospitals are under control, the administrative licensing control of such equipments can lower the investment of medical equipments and medical expenses by 32.2% and 78.2% respectively, in comparison with the approval mechanism. It is therefore important to strengthen the regulation on large medical equipments at provincial level, and encourage human capital investment of public hospitals with service quality as orientation. These efforts can lower excessive supply of medical technology of provincial hospitals, and help the government to improve its regulatory effects for large medical equipments. Key words: Health resources; Large medical equipment; Regulation; Effects; Zhejiang province