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The New Cooperative Medical System in China: A Cure for All?

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  • Julie Ann Luiz Adrian

    (University of Hawaii at Hilo, USA)

  • Tam Bang Vu

    (University of Hawaii at Hilo, USA)

  • Karla S. Hayashi

    (University of Hawaii at Hilo, USA)

Abstract

This paper examines the effects of the New Cooperative Medical System in China. Data on village clinics, local hospitals, private medical expenditures, and government and social medical expenditures are collected from the National Bureau of Statistics of China. Preliminary tests are performed on multicolinearity, endogeneity, omitted variables and also reveal both heteroskedasticity and autocorrelation problems. The Newey-West estimations are used to obtain corrected standard errors for coefficient estimates. The results show that the new cooperative medical system appears to help households reduce medical expenditures and decrease numbers of deaths; it also seems to reduce the numbers of pharmacists and physicians in local hospitals, redirecting these pharmacists and physicians to village clinics.

Suggested Citation

  • Julie Ann Luiz Adrian & Tam Bang Vu & Karla S. Hayashi, 2012. "The New Cooperative Medical System in China: A Cure for All?," International Journal of Healthcare Information Systems and Informatics (IJHISI), IGI Global, vol. 7(3), pages 15-26, July.
    • Handle: RePEc:igg:jhisi0:v:7:y:2012:i:3:p:15-26
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