Healthcare reforms in China simplify process for patients, not providers

china insurance industry

Hospitals are finding that this new system is not working out as well for them as for the people using them.

According to the latest data that has been issued by analysts, while the Chinese government has intentions to lower the bills, and its healthcare reforms have been applauded by the industry, it is lacking in details that are needed to correct the hospital finance shortfalls.

The government has made the effort to reduce the size of medical bills central to its massive overhaul.

The central government has made its healthcare reforms this year focus on slashing the cost of medical bills, but at the same time, its plan does not actually provide very much in terms of how the urban public hospitals will be able to overcome their financial struggles. Among the top goals in the overhaul is to reduce the bills that are paid by the patients. However, analysts are saying that this has not been followed up by helping the hospitals to be able to sort out their financial problems.

healthcare reforms and insurance news chinaTherefore, while the healthcare reforms are benefiting patients, hospitals are continuing to flounder.

The State Council’s latest guidelines for making healthcare reforms that will be “breakthroughs” in the country included cost controls and boosted subsidies for medical insurance among the 26 different tasks that were covered. This government document was only the most recent in a four year long effort (so far) from Beijing to completely overhaul the tremendously inaccessible and highly expensive health system.

These vast healthcare reforms are now one of the largest tests that will be faced by Premier Li Keqiang, who was there to oversee its launch before becoming premier back in March 2013. Li’s cabinet, the State Council, has ordered the local governments to take a larger role in these efforts.

The strategy requires that public health insurance coverage be maintained at a very high rate and that medical bills come with growing reimbursements. It would boost public coverage subsidies for residents of rural areas as well as for urban residents who are not employed by over 16 percent. Though very promising, these healthcare reforms are now seeing a number of hurdles from the side of the providers which must also be overcome.