Policy Expert Prescribes for China's Medical Reform
2015/2/8 E药经理人

     Professor Cai Jiangnan, Director of Medical Management and Policy Research Center, China Europe International Business School (CEIBS), believes that one country's healthcare system depends on two key aspects: one is the money raising, which decides where the fees are coming from; the other is the provider, who provides the medical service. As an expert on new medical reform of China initiated in 2009, Cai thinks that current Chinese medical system has problems on both aspects, which is demonstrated by Chinese individuals’ high medical expense and their difficulty in finding the doctor they want. On the government’s side, large investment but low efficiency are easy target to be criticized.

     Why there are such problems? Cai notes that the problems come from the medical system itself. China's management on the public hospitals is highly centralized. About 90% of the revenues of those hospitals are from the market, only about 10% is from the government investment.

     How to solve them? Cai suggests the ideal occasion would be, 1) the biggest payer should be the commercial insurance, while the individuals and the government pay less than 20% medical fees respectively; 2) the number of public should be reduced to about 25%, so the medical service market can be dominated by the non-profit private hospitals which will be inspected by the government; 3) doctors should be able to practice in multiple medical institutions.

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