China Medical reform

Highlights

News

China to expand healthcare network coverage

China will invest 850 billion yuan, or 125 billion US dollars, in medical sector reforms over the next 3 years.

Beijing, Fujian extend social security system

Beijing and Fujian are extending their social security system coverage to make it more accessible.

Health care reform

Tian Wei has gone to hospitals and schools, supermarkets and parks to explore the concerns of ordinary Chinese people.

Chinese Medical Reform Plan Draft

[Goal] Affordable health care system

A "safe, effective, convenient and affordable" medical system would cover all urban and rural residents by 2020.

[Government´s function] A dominant role

Central and local governments are required to increase health funding to ease financial burden of individuals.

[Funding] 850 mln yuan medical reform plan

- Ensure a minimum standard of healthcare for more than 90% of the population by 2011.

- Provide annual healthcare insurance of 120 yuan per person.

- Build hospitals and improve medical services at the county level and in remote areas.

- Expedite the reform of state-run hospitals.

[Mixed responses] Suggestions, complaints & criticisms

- Resident:"It would cost more than a 1,000 yuan (146 U.S. dollars) for a minor illness in my county (in Shandong province)."

- Healthcare reform expert Gu Xin:"The government asked for our opinions and paid great attention before the plan was drafted."

- Peking University professor Li Ling:"People´s purchasing capacity will increase if they don´t have to worry about expensive medical fees."

Five supplementary measures

The five measures aimed to provide universal basic medical service to all Chinese citizens, and pave the road for further medical reforms.

1. Medical insurance

Increase the amount of rural and urban population covered by the basic medical insurance system or the new rural cooperative medical system to at least 90 percent by 2011.

2. Basic medicine system

Build a basic medicine system that includes a catalogue of necessary drugs produced and distributed under government control and supervision.

- Chinese Health Minister Chen Zhu:"We surely want to include drugs for those common ailments and frequently-occurring diseases."

3. Grassroots medical service

Improve services of grassroots medical institutions, especially hospitals at county levels, township clinics or those in remote villages, and community health centers.

4. Public health service

Gradually provide equal public health services in both rural and urban areas in the country.

5. Public hospital reform

Reform public hospitals in terms of their administration, operation and supervision.

- Due to a lack of government funding, public hospitals have mainly operated using profits from medical services and drug prescriptions.

- Chinese Health Minister Chen Zhu:"China aims to increase government subsidies to public hospitals to cut their involvement with drug sales so as to cut drug prices, medical supply prices and physical check-up fees.

Path of Chinese Medical Reform

[1992: Beginning] Public health service

Abolish the system, under which the government covered more than 90% of expenses.

[1997: Turning point] Market-oriented system

A historic decision was issued that defining medicine as a social welfare sector. The country switched to a market-oriented medical system.

A series of medical reforms followed in the next 10 years, however, concluded as "basically unsuccessful" in 2005 reports.

[2006: New period] Goverment leading role

October 2008, the long-awaited health care reform plan was released for public debate, which:

- breaking the market-oriented reform over the past 20 years
- redefining government´s responsibility as providing public health and basic medical service.

Problems exist in present medical system

1. Soaring medical fees

The mother took her Leukemia kid to Tianjin seeking treatment, but was about to quit treatment for her child due to the lack of money and prepared to return home in Zhangjiakou of north China´s Hebei Province. More>>

2. A lack of access to affordable medical services

The medical resources in Guizhou and the larger inner regions of China could hardly match big cities like Beijing, which is home to more than fifty Class-A hospitals. In Guizhou, there are only six such hospitals and most of them are based in Guiyang, the provincial capital. More>>

3. Poor doctor-patient relationships

Illegal deals between health workers and drug dealers also contributed to the rising medical expenses. Some doctors prescribed expensive drugs for which they received kickbacks and caused public distrust of hospitals. More>>

4. Low medical insurance coverage

Statistics from the Ministry of Health show that:

- The personal spending on medical services has doubled from 21.2 percent in 1980to 49.3 percent in 2006;

- The government funding dropped to 18.1 percent from 36.2 percent in 1980.