Improvement of government regulation in the medical industry

With attributes of both public sector industries and the market and asymmetry of information between the government and medical institutions and between doctors and patients, the medical industry cannot develop healthily if it relies simply on market mechanisms. Thus, government regulatinn. necds to be adopted. The author analyzes the state of government regulation in the domestic medical industry by giving an account of its connotations and development history and argues that only by adopting incentive regulation and perfecting the medical charging system, the medical quality evaluation system and the medical legal system can effective regulation of medical costs, medical impartiality and effectiveness, and highly efficient, fair and orderly development of the medical industry be ensured.