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Beijing Plans $124 Billion Overhaul of Health Care
Keywords:
The loss of state support in the 1980's resulted in the gradual withering of the health care system in China as individuals bore the brunt of health care costs. Hospitals and clinics shifted to pay as you go system, with the emphasis on prescribing treatment that would boost income including costly tests.
China's dysfunctional health system and burden on middle class household finances.
12/30/2005
the whole system is geared to providing more expensive care with upfront cash required even if you have insurance or care is refused, and the private sector offers very little insurance. Government insurance coverage is also inadequate. Two thirds of China's people have no insurance at all.
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Stiglitz and Sen's report point to need for looking at multiple indicators of growth, including education, health care and environment.
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Be skeptical of touting GDP growth numbers. China which has done this has learnt from this experience as it shifts to trying to assess the costs of environmental degradation in headlong industrialization. The U.S. and the shift to bigger houses and bigger cars, which later fed a collapse of housing and the auto industry show a different angle of this obsession with GDP numbers that can work constructively or destructively if not understood and managed properly. Air quality and pollution is a major problem in China and affects the quality of life.
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China's health care reforms and increased spending on health care fall short of what is needed.
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China's increased health care spending of $16 billion by the central government in each of the years 2009-2011 is clearly inadequate. Over 200 million are uninsured and the health care system jacks up the costs so much with expensive tests and pills that the poor tend to shun hospitals. The current plan puts off government financed health coverage for 90% of the population till 2020.
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China has made only slow progress in health care, even as industrialization proceeded rapidly.
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