MEDICAL COSTS AND UTILIZATION TRENDS IN CHINA: IMPLEMENTING MARKET AND REGULATORY REFORMS

Abstract

The Chinese medical system is moving from a planned economy to a market economy through implementing health reforms. The authors examine empirical data on China's health system from the past 10 years about the organization, financing, and equity. The data show high medical inflation rates, low percent of GDP spent on healthcare, limited relative supply of the more sophisticated tertiary centers, and increased out-of-pocket outlays. Based on linear coefficient analysis of health expenditure and utilization trends, the authors contend that the reforms need to incorporate regulatory measures that assure insurance coverage through the reorganization of health services delivery and financing.