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The emergence of proprietary medical facilities in China

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  • Hou, Xiaohui
  • Coyne, Joseph
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    Abstract

    This paper analyzes the evolution and development of market conditions and government policies that have favored the emergence of proprietary medical facilities in China. Excess and differentiated demand for medical services, the existent profitability and supply of the investment capital in health care market, and favorable government policies have encouraged the entrance of proprietary facilities in health care market. The paper further analyzes why nonprofit health organizations are not an optimal organizational form in the current Chinese health care market. After discussing the strengths and weaknesses of proprietary ownership in health care market in China, the paper concludes with important managerial and policy suggestions.

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    File URL: http://www.sciencedirect.com/science/article/B6V8X-4SCTSKG-2/2/c03328e334927ad85f10e5da141da03b
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    Bibliographic Info

    Article provided by Elsevier in its journal Health Policy.

    Volume (Year): 88 (2008)
    Issue (Month): 1 (October)
    Pages: 141-151

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    Handle: RePEc:eee:hepoli:v:88:y:2008:i:1:p:141-151

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    Web page: http://www.elsevier.com/locate/healthpol

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    References

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    1. Karen Eggleston & Winnie Yip, 2004. "Hospital Competition under Regulated Prices: Application to Urban Health Sector Reforms in China," Discussion Papers Series, Department of Economics, Tufts University 0401, Department of Economics, Tufts University.
    2. Karen Eggleston & Li Ling & Meng Qingyue & Magnus Lindelow & Adam Wagstaff, 2008. "Health service delivery in China: a literature review," Health Economics, John Wiley & Sons, Ltd., vol. 17(2), pages 149-165.
    3. Liu, Xingzhu & Hsiao, William C. L., 1995. "The cost escalation of social health insurance plans in China: Its implication for public policy," Social Science & Medicine, Elsevier, vol. 41(8), pages 1095-1101, October.
    4. Wu, Ximing & Perloff, Jeffrey M., 2005. "China's Income Distribution, 1985-2001," Institute for Research on Labor and Employment, Working Paper Series qt0zd6m0sf, Institute of Industrial Relations, UC Berkeley.
    5. Liu, Gordon & Liu, Xingzhu & Meng, Qingyue, 1994. "Privatization of the medical market in socialist China: A historical approach," Health Policy, Elsevier, vol. 27(2), pages 157-174, February.
    6. Liu, Yuanli & Berman, Peter & Yip, Winnie & Liang, Haocai & Meng, Qingyue & Qu, Jiangbin & Li, Zhonghe, 2006. "Health care in China: The role of non-government providers," Health Policy, Elsevier, vol. 77(2), pages 212-220, July.
    7. Hsiao, William C., 2007. "The political economy of Chinese health reform," Health Economics, Policy and Law, Cambridge University Press, vol. 2(03), pages 241-249, July.
    8. Berman, Peter A., 1998. "Rethinking health care systems: Private health care provision in India," World Development, Elsevier, vol. 26(8), pages 1463-1479, August.
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    Cited by:
    1. Liu, Gordon G. & Li, Lin & Hou, Xiaohui & Xu, Judy & Hyslop, Daniel, 2009. "The role of for-profit hospitals in medical expenditures: Evidence from aggregate data in China," China Economic Review, Elsevier, vol. 20(4), pages 625-633, December.

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