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Impact of the new health care reform on hospital expenditure in China: A case study from a pilot city

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  • Yang, Jinqiu
  • Hong, Yongmiao
  • Ma, Shuangge

Abstract

This study evaluates the preliminary effects of the new healthcare reform plan for hospital expenditures in China. Cross-sectional patient-level data are used for the analysis. We employ an endogenous switching regression model to account for heterogeneity and sample selection. The results show that the reform plan can significantly reduce total hospitalization expenses and medication fees for patients who select the pilot hospital. It may exert inadequate control over inspection fees, but as the advance of the reform, the control is likely to improve gradually. Our findings underscore the importance of realigning incentives for healthcare providers in China.

Suggested Citation

  • Yang, Jinqiu & Hong, Yongmiao & Ma, Shuangge, 2016. "Impact of the new health care reform on hospital expenditure in China: A case study from a pilot city," China Economic Review, Elsevier, vol. 39(C), pages 1-14.
  • Handle: RePEc:eee:chieco:v:39:y:2016:i:c:p:1-14
    DOI: 10.1016/j.chieco.2016.03.005
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