Hospital Institutional Context and Funding

Carine Milcent

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: This chapter focuses on hospital ownership and supervision. Public hospitals are mostly, but not always, under the supervision of the Health Ministry. There are a certain number of other governing bodies that are directly involved in the management of hospitals. A cross-ministry group was set up in 2006 to facilitate the implementation of hospital reforms. Apart from the organizational structure, the funding of hospitals and its evolution is studied. Between 1979 and 1991, the government introduced a co-payment system in healthcare establishments. In 1992, the Ministry of Health officially granted greater autonomy to public hospitals. They were authorized to deliver paid services and to make profits, but were made responsible for their losses and debts. By 2003, central government funding had fallen to 8% of the hospital budget. As a result, public hospitals in China behave very similarly to for-profit firms, while being governed as any traditional public structure. The next step is the current experiment of a Diagnostics Related Group-based payment in China. Along with the financial autonomy of public hospitals, different reforms have been directed at developing private hospitals, even though many obstacles still remain.

Keywords: Evolution; Healthcare institution; Funding and ownership; Healthcare quality; Healthcare expenditure (search for similar items in EconPapers)
Date: 2018
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01785740v1
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Published in Carine Milcent. Health Reform in China: From Violence To Digital Healthcare, Palgrave Mac Millan, pp.63 - 89, 2018, 978-3-319-69736-9. ⟨10.1007/978-3-319-69736-9_4⟩

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Working Paper: Hospital Institutional Context and Funding (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-01785740

DOI: 10.1007/978-3-319-69736-9_4

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