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

Author

Listed:
  • David Chu

    (Department of Economics, College of the Holy Cross)

  • Kolleen Rask

    (Department of Economics, College of the Holy Cross)

Abstract

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).

Suggested Citation

  • David Chu & Kolleen Rask, 2001. "Health Care Reform in Transitional China: Its Impact on Accounting and Financial Management," Working Papers 0103, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:0103
    as

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