Organization and Finance of China's Health Sector: Historical Antecedents for Macroeconomic Structural Adjustment

Inquiry : a Journal of Medical Care Organization, Provision and Financing
Hui Li, Peter Hilsenrath

Abstract

China has exploded onto the world economy over the past few decades and is undergoing rapid transformation toward relatively more services. The health sector is an important part of this transition. This article provides a historical account of the development of health care in China since 1949. It also focuses on health insurance and macroeconomic structural adjustment to less saving and more consumption. In particular, the question of how health insurance impacts precautionary savings is considered. Multivariate analysis using data from 1990 to 2012 is employed. The household savings rate is the dependent variable in 3 models segmented for rural and urban populations. Independent variables include out-of-pocket health expenditures, health insurance payouts, housing expenditure, education expenditure, and consumption as a share of gross domestic product (GDP). Out-of-pocket health expenditures were positively correlated with household savings rates. But health insurance remains weak, and increased payouts by health insurers have not been associated with lower levels of household savings so far. Housing was positively correlated, whereas education had a negative association with savings rates. This latter finding was unexpected...Continue Reading

References

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Sep 16, 2005·The New England Journal of Medicine·David Blumenthal, William Hsiao
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Apr 2, 2015·The New England Journal of Medicine·David Blumenthal, William Hsiao

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