Empirical Analysis of Total Factor Productivity Growth in China’s Medical Service Industry：Based on the Provincial Panel Data During 2005-2011

LI Xi-ping

doi:10.7664/CHE20140418

Abstract：Objective: To provide guidance for management policies of medical service industries, through empirical data analysis on the growth situation of total factor productivity in medical service industry of China. Methods: The stochastic frontier production function model was established by the logarithm time-varying technical efficiency method in order to depict the technical efficiency and its change trend of the medical service industry in China and total factor productivity growth were studied relying on Eviews6.0 to the medical service industry in China. Results: Each unit of capital and labor in medical service industry could make the medical income increases by 0.72 in China, which was not reasonable in the efficiency of resources allocation. Economies of scale efficiency in the medical service industry in China presented a decreasing trend, and stochastic frontier generally showed an increasing trend. Conclusion: There were some differences from the perspective of total factor decomposition regression results in different provinces. The efficiency of resource allocation in some provinces was not reasonable, and economies of scale efficiency in the medical service industry appeared a decreasing trend. The government should adjust the policy, strengthen the system construction of medical service industry (including hospital compensation system of corporate governance system, income distribution system of the hospital, the resident income distribution and redistribution system), and provide experience references for designing and planning of medical service industry.