Externality Theory of Public Hospital's Public Welfare / 中国医学伦理学

ABSTRACT

Public hospital's public property is mainly reflected in providing people with equitable access, quality and efficiency of basic medical services. However, due to lack of understanding in importance of the medical services positive and negative externalities, lead to the dilution of commonweal of public hospital. Meanwhile, externalities caused by transaction costs and unclear property rights in medical services activities further exacerbate welfare fade. The government should take effective measures to protect and encourage positive externalities, prevent and control the negative externali-ties, and, by way of reducing transaction costs, clear property rights to resolve external effects, as far as possible to pro-tect the public interest in public hospitals.