Abstract
How to improve healthcare system’ efficiency has been highly concerned by Chinese government. The objectives of this paper are to establish production function of medical service and analyze returns to scale; to measure technical efficiency; and to highlight possible policy implications of the results for policy makers. Stochastic Frontier Approach (SFA) is employed in this paper based on data from 2010 China Health Statistical Yearbook. These findings suggest that increasing investment on human resource is a key factor for raising CHS’ efficiency. Operation model and institution will contribute to technology efficiency of CHS.
Highlights
A key element of public policy is the promotion of good health in order to attain broad based economic growth
Stochastic Frontier Approach (SFA) is employed in this paper based on data from 2010 China Health Statistical Yearbook
These findings suggest that increasing investment on human resource is a key factor for raising CHS’ efficiency
Summary
A key element of public policy is the promotion of good health in order to attain broad based economic growth. Base on this paradigm, many countries devote huge budgetary allocation to health. China’s health reform has led a through and arduous road for decades. The problems of difficult access to and costly medical services are still outstanding. How to use scarce medical resource to play a greater efficiency is always a hot issue in the society. With the new medical reform policy introduced, basic medical and health system is established, the equity of health service has gradually increased and the medical service efficiency has been plagued by health departments
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