In China, government funding affects healthcare costs differently depending on whether it’s directed towards supply or demand, with regional variations in effectiveness.
This study examines the impact of government subsidies on residents’ health and healthcare expenditure, considering both supply and demand perspectives. Using data from public databases in China and employing mathematical modeling and regression analysis, the research finds that increased funding on the supply side correlates with reduced perinatal mortality rates, while financial compensation on the demand side is associated with higher outpatient and hospitalization expenses. The effectiveness of government funding varies across regions, with supply-side funding more effective in economically developed areas and demand-side funding more effective in the western region. The study concludes by offering policy recommendations and theoretical support for policymakers to address regional heterogeneity and optimize healthcare financing strategies.
