Transformations  in
Business & Economics

CAN THE MEDICAL BURDEN OF DEMANDERS BE REDUCED BY INCREASING MEDICAL STAFF'S INCOME? EVIDENCE FROM MAINLAND CHINA⁶
Jinlong Deng, Peilin Zhang, Yong Du Xing Pi, Jingyi Chen

ABSTRACT: Increasing the medical staff's income stimulated working passion and improved the supply of medical services. However, what impact does increasing the medical staff's income have on the medical burden of demanders according to the relationship between supply and demand? Can this increase help solve the problem of "expensive medical treatment”? To explore the internal logic between increasing the income of medical staff and solving the problem of "expensive medical treatment,” using data from 31 provinces in Mainland China, from 2011 to 2019, the impact of increasing the income of medical staff on the medical burden of demanders was empirically analysed. In addition, the moderating role of government investment in different directions was examined and the effect of the "zero drug markup” policy was tested. Results show that increasing the income of medical staff intensifies the medical burden of demanders, which exists as patient expenses and the health expenditures of the whole country and residents. Furthermore, government investment acts as a disincentive between the income of medical staff and the expense of patients, especially investment in the supply side. However, government investment strengthens the relationship between the income of medical staff and health expenditure of the whole country and residents, especially investment on the demand side. Conclusions have guiding and reference significance for understanding the economic effect of increasing the income of medical staff on the medical burden of residents and the differences between government investment directions.

KEYWORDS:  medical staff's income, the medical burden of demanders, government investment, market economy.

JEL classification:  L91, O18, R11

⁶Acknowledgments:  Acknowledgments. This study was supported by the Research Project of Chongqing Health Economics Association (No. ywjk2021-1) and Science & Technology Project of The Ninth People's Hospital of Chongqing (No. 2021YJXM05).