“Subsidies to the Supply-Side”or“Subsidies to the Demand-Side”? An Analysis of the Effect of Government Medical Input Path on Health Outcome

Abstract

Abstract: In the context of the increasingly tightening government fiscal revenue and expenditure, how to rationally use the existing stock to improve the health outcome is a key problem in government medical investment. The health performance test based on the input path is of great significance, which is related to the structural optimization of the future government medical investment. By making use of the provincial panel data from 2007 to 2017, this paper conducts an empirical analysis of the impact of“subsidies to the supply-side”and“subsidies to the demand-side”on the health outcome. The results show that to increase the investment to the subsidies to both the supply-side and the demand-side can significantly improve the health outcome. The impact of continuously subsidies to the supply-side or to the demand-side on the health marginal outcome presents a nonlinear growth, with an inverted U shape as its specific form. Subsidies to the supply-side or to the demand-side is the two sides of one body of the improvement of the health outcome, each is the basis of the other. If the“subsides to the supply-side”exceeds the threshold value, it would directly improve the facilitating effect of“subsidies to the demand-side”on the health outcome, while the continuous“subsidies to the demand-side”may indirectly improve the health outcome of the“subsidies to the supply-side”. Therefore, in order to increase the health outcome of the government investment, it is necessary to establish a result-oriented health investment mechanism, so as to achieve the transformation from “taking treatment as the central”to“taking people's health as the central”; to promote the equalized allocation of the health resources, changing the “subsidies to the supply-side” from the extensive form to the fine dripping irrigation form, and establishing a cooperation network for the areas with backward medical technology; to construct a competition-cooperation medical service system with “subsidies to the demand-side”as the core.

Key words: government medical investment, “subsidies to the supply-side”, “subsidies to the demand-side”, health output

CLC Number:

F812.45

WANG Zeng-wen, HU Guo-heng. “Subsidies to the Supply-Side”or“Subsidies to the Demand-Side”? An Analysis of the Effect of Government Medical Input Path on Health Outcome[J]. Contemporary Finance & Economics, 2021, 0(11): 41-51.

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