Construction and analysis of balance model on supply and demand in pharmaceutical market before and after the separation of pharmacies from hospitals

In China, it is more and more difficult and expensive to see a doctor. One of the deep reasons goes to the situation that the hospitals and medicine are bound together and that medicine is supplemental to support the hospitals. This article sets forth a brief and direct balance model on supply and demand in pharmaceutical market and analyses the policy of separation of pharmacies from hospitals on Micro-Economics. The construction of the models and analysis has provided a new solution to solve the problem of fostering hospitals with medicine and to implement the separation of hospitals and medicine.