Health Care Reform in Transitional China: Its Impact on Accounting and Financial Management
Date of This Version
Accounting, Financial management, health care, China, transition economies
In this paper we discuss health care provision in developing countries within a two-track framework of public-private cooperation. China is presented as a case study to illustrate the difficulties facing a developing country that adopts a market-driven health care strategy in the context of transitioning from a command economy to a market economy. Recent reforms in the Chinese health care system and the financial structure which supports it are analyzed. The outcomes in terms of both the benefits and dangers of relying on market mechanisms are evaluated. We conclude that some aspects of the health care system would benefit from an even greater reliance on market forces (e.g., the "two-track" pricing scheme for hospitals and the development of a managerial accounting system), while others are shown to require more government intervention (e.g. equity concerns and basic health services).
Working Paper Number
Chu, David and Rask, Kolleen, "Health Care Reform in Transitional China: Its Impact on Accounting and Financial Management" (2001). Economics Department Working Papers. Paper 119.
This article was published as: Chu, D., Rask, K. (2001). Health Care Reform in Transitional China: Its Impact on Accounting and Financial Management. Research in Healthcare Financial Management, 6(1), pp. 1-19.