Abstract: Taking the medical security system of China’s nine provinces as the decision making unit, this study first evaluates the performance of the medical security system in some regions from 2007 to 2011 and the changes of TFP through an analysis of the two stages of DEA. Then by establishing a panel Tobit model, it is found that the input and output of the medical security system is far from optimal from the year 2007 to 2011. The Tobit model indicates that the urbanization and aging are the important factors reducing the performance of the medical security system in China. For the future reform of the medical security system, it is suggested that China should make the full use of the market mechanism and greatly promote the roles of commercial insurance.

Key words: medical security system; input and output indicators; DEA