China's Healthcare Quandary: How Partial Privatization Values Quality Over Equality
Harvard International Review › Vol. 30 Nbr. 2, July 2008
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Summary
In 1978, Deng Xiaoping began the economic reforms now referred to as "Gaige Kaifang," through which China ushered in an era of unprecedented receptivity to foreign influence. The shift to liberalized trade policy led to reduced poverty levels and set China on the path to economic strength. But the reforms also catalyzed massive change within the formerly centralized medical system. While healthcare prices have risen over the past two decades, the number of hospitals in China has actually grown. As the Chinese government continues to privatize healthcare, it is vital to understand the cause behind the seemingly paradoxical rise in medical costs. The Chinese Ministry of Health is currently attempting to bridge the gap between the rich and poor in the healthcare sector by opening more avenues for domestic production and competition, while educating poorer consumers on product safety. China is also fostering a regulation environment that hopes to increase the amount and quality of medical technology produced in China.
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China's Healthcare Quandary: How Partial Privatization Values Quality Over Equality
In 1978, Deng Xiaoping began the economic reforms now referred to as "Gaige Kaifang," through which China ushered in an era of unprecedented receptivity to foreign influence. The shift to liberalized trade policy led to reduced poverty levels and set China on the path to economic strength. But the reforms also catalyzed massive change within the formerly centralized medical system. Medicine is now the domain of the private sector and provincial and local governments, rather than the national government. While market reforms in the economy have been a boon for the Chinese, similar reforms in the healthcare system have improved quality but also created unequal access to healthcare due to rising costs.
While healthcare prices have risen over the past two decades, the number of hospitals in China has actually grown. In 1980, there were approximately 9,90...See the full content of this document
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