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Impact of the new health care reform on hospital expenditure in China: A case study from a pilot city

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  • Yang, Jinqiu
  • Hong, Yongmiao
  • Ma, Shuangge

Abstract

This study evaluates the preliminary effects of the new healthcare reform plan for hospital expenditures in China. Cross-sectional patient-level data are used for the analysis. We employ an endogenous switching regression model to account for heterogeneity and sample selection. The results show that the reform plan can significantly reduce total hospitalization expenses and medication fees for patients who select the pilot hospital. It may exert inadequate control over inspection fees, but as the advance of the reform, the control is likely to improve gradually. Our findings underscore the importance of realigning incentives for healthcare providers in China.

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  • Yang, Jinqiu & Hong, Yongmiao & Ma, Shuangge, 2016. "Impact of the new health care reform on hospital expenditure in China: A case study from a pilot city," China Economic Review, Elsevier, vol. 39(C), pages 1-14.
    • Handle: RePEc:eee:chieco:v:39:y:2016:i:c:p:1-14
    DOI: 10.1016/j.chieco.2016.03.005
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    Cited by:

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    3. Longden, Thomas & Wong, Chun Yee & Haywood, Philip & Hall, Jane & van Gool, Kees, 2018. "The prevalence of persistence and related health status: An analysis of persistently high healthcare costs in the short term and medium term," Social Science & Medicine, Elsevier, vol. 211(C), pages 147-156.
    4. See, Kok Fong & Ng, Ying Chu, 2021. "Do hospital reform and ownership matter to Shenzhen hospitals in China? A productivity analysis," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 145-155.
    5. Dong-Shang Chang & Wen-Sheng Wang & Rouwen Wang, 2018. "Identifying Critical Factors of Sustainable Healthcare Institutions’ Indicators Under Taiwan’s National Health Insurance System," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(1), pages 287-307, November.
    6. Jiaqi Chen & Song Xu & Jing Gao, 2020. "The Mixed Effect of China’s New Health Care Reform on Health Insurance Coverage and the Efficiency of Health Service Utilisation: A Longitudinal Approach," IJERPH, MDPI, vol. 17(5), pages 1-13, March.
    7. Kebin Deng & Zhong Ding & Jieni Li, 2022. "Medical insurance and physician-induced demand in China: the case of hemorrhoid treatments," International Journal of Health Economics and Management, Springer, vol. 22(3), pages 257-294, September.
    8. Fu, Hongqiao & Li, Ling & Yip, Winnie, 2018. "Intended and unintended impacts of price changes for drugs and medical services: Evidence from China," Social Science & Medicine, Elsevier, vol. 211(C), pages 114-122.
    9. Xueqian Song & Yongping Wei & Wei Deng & Shaoyao Zhang & Peng Zhou & Ying Liu & Jiangjun Wan, 2019. "Spatio-Temporal Distribution, Spillover Effects and Influences of China’s Two Levels of Public Healthcare Resources," IJERPH, MDPI, vol. 16(4), pages 1-18, February.

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