In 2019, Chinese researchers described the effects of the financing reforms of public hospitals and suggests steps to further progress towards equitable, efficient, and good quality care by reviewing China’s health system financing reform over 10 years.
Key messages:
Perverse financial incentives for public hospitals contributed to the inefficient use of medical resources in China before 2009
Financing reform focused on removing drug mark-ups, increased budget allocation, adjusting fee schedules, and reforming payment methods
The reform has substantially reduced hospitals’ reliance on profit from pharmaceutical sales, while progress on the other measures is insufficient
The varied quality of care, increasing hospital dominance, and growing costs to patients requires further reform
We recommend consolidating the leadership in financing reform, implementing value based strategic purchasing, and allowing public hospitals greater management autonomy
