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Health Care Reform in Transitional China: Its Impact on Accounting and Financial Management

David Chu (dchu@holycross.edu) and Kolleen Rask (krask@holycross.edu)
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David Chu: Department of Economics, College of the Holy Cross

No 103, Working Papers from College of the Holy Cross, Department of Economics

Abstract: In this paper we discuss health care provision in developing countries within a two-track framework of public-private cooperation. China is presented as a case study to illustrate the difficulties facing a developing country that adopts a market-driven health care strategy in the context of transitioning from a command economy to a market economy. Recent reforms in the Chinese health care system and the financial structure which supports it are analyzed. The outcomes in terms of both the benefits and dangers of relying on market mechanisms are evaluated. We conclude that some aspects of the health care system would benefit from an even greater reliance on market forces (e.g., the "two-track" pricing scheme for hospitals and the development of a managerial accounting system), while others are shown to require more government intervention (e.g. equity concerns and basic health services).

Keywords: Accounting; Financial management; health care reform; health care; china; transition economies (search for similar items in EconPapers)
Pages: 27 pages
Date: 2001-01
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Published in Research in Healthcare Financial Management, August 2001, Vol. 6:1, pp. 1-19.

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Persistent link: https://EconPapers.repec.org/RePEc:hcx:wpaper:0103

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