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The emergence of proprietary medical facilities in China


  • Hou, Xiaohui
  • Coyne, Joseph


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.

Suggested Citation

  • Hou, Xiaohui & Coyne, Joseph, 2008. "The emergence of proprietary medical facilities in China," Health Policy, Elsevier, vol. 88(1), pages 141-151, October.
  • Handle: RePEc:eee:hepoli:v:88:y:2008:i:1:p:141-151

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    References listed on IDEAS

    1. repec:aph:ajpbhl:1998:88:5:777-780_9 is not listed on IDEAS
    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, 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.
    4. 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.
    5. 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.
    6. Berman, Peter A., 1998. "Rethinking health care systems: Private health care provision in India," World Development, Elsevier, vol. 26(8), pages 1463-1479, August.
    7. Ximing Wu & Jeffrey M. Perloff, 2005. "China's Income Distribution, 1985-2001," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 763-775, November.
    8. 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.
    9. Karen Eggleston & Winnie Yip, 2004. "Hospital Competition under Regulated Prices: Application to Urban Health Sector Reforms in China," International Journal of Health Economics and Management, Springer, vol. 4(4), pages 343-368, December.
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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.
    2. Ying Liang & Minglei Guo, 2015. "Utilization of Health Services and Health-Related Quality of Life Research of Rural-to-Urban Migrants in China: A Cross-Sectional Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 277-295, January.
    3. Mohajan, Haradhan, 2016. "An Analysis of Knowledge Management for the Development of Global Health," MPRA Paper 82959, University Library of Munich, Germany, revised 16 Aug 2016.

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