The document discusses the increasing health expenditures in China amid rapid economic and social development, population aging, and evolving disease patterns. As health expenditures rise sharply, the study highlights the need to effectively utilize limited medical resources to enhance public health. It examines changes in the composition of China’s total health expenditure, emphasizing the significance of various funding sources, notably government, social, and out-of-pocket expenditures, with social health funding becoming predominant. It notes that hospital expenses constitute around 60% of total health expenditures, while health administration and medical insurance management drive overall growth.
Despite this expansion, China’s health expenditure as a percentage of GDP remains relatively low, indicating a need for increased investment in the healthcare sector. The study calls for the government to enhance its investment in fundamental medical services and to implement a scientific cost control mechanism for pharmaceuticals. Additionally, it suggests diversifying funding sources, particularly by promoting the development of commercial health insurance to alleviate individual medical expenses and improve overall health outcomes in the country.