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Health Care Reform in Transitional China: Its Impact on Accounting and Financial Management


Author Info

  • David Chu

    (Department of Economics, College of the Holy Cross)

  • Kolleen Rask

    (Department of Economics, College of the Holy Cross)


In this paper we discuss health care provision in developing countries within a two-track framework of public-private cooperation. China is presented as a case study to illustrate the difficulties facing a developing country that adopts a market-driven health care strategy in the context of transitioning from a command economy to a market economy. Recent reforms in the Chinese health care system and the financial structure which supports it are analyzed. The outcomes in terms of both the benefits and dangers of relying on market mechanisms are evaluated. We conclude that some aspects of the health care system would benefit from an even greater reliance on market forces (e.g., the "two-track" pricing scheme for hospitals and the development of a managerial accounting system), while others are shown to require more government intervention (e.g. equity concerns and basic health services).

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Bibliographic Info

Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0103.

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Length: 27 pages
Date of creation: Jan 2001
Date of revision:
Publication status: Published in Research in Healthcare Financial Management, August 2001, Vol. 6:1, pp. 1-19.
Handle: RePEc:hcx:wpaper:0103

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Keywords: Accounting; Financial management; health care reform; health care; china; transition economies;


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