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Viewing report
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Governing the Healthcare Market. Edition No. 1
VDM Publishing House, Sep 2008, Pages: 268
The Chinese healthcare system has evolved from a
centralized, egalitarian public system (1949-1979) to
one which can be characterized as public identity,
private behavior, health system (1980-1999). With
blurring of the distinction between public and
private governing systems, high cost, high volume
services are offered through excessive
entrepreneurial practices. Regulating healthcare
market has emerged as an essential issue. Without an
effective state health financing tool, nor mature
market institutions, China has adopted a
management-based regulation but the absence of
effective governance structure hinders effective
regulation.
To improve healthcare quality and contain costs,
China will need to develop public financing tools to
alter the current perverse incentives of provider.
Government will also need to work with civil society
organizations to develop tools governing clinical
practice, such as clinical audit for risk management
and hospital accreditation programs. To do so
requires establishing arms-length governance
mechanisms between health departments and hospitals,
and corporate governance structures within hospitals.
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