The impacts of marketization and subsidies on the treatment quality performance of the Chinese hospitals sector

Sung Ko LI*, Xinju He

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This paper investigates the treatment quality of the hospitals sector in China during 2009–2014. The treatment quality of a hospital is higher if relatively more medical services are provided with fewer deaths. Our research question is twofold: (i) Does the pressure of for-profit lower treatment quality by causing more deaths? (ii) Can government subsidy raise treatment quality by releasing the pressure from market competition? Our empirical results show that the treatment quality in China has been improving during the studied period. There are pieces of evidence that both marketization and government subsidies can boost the treatment quality of the hospitals sector. The co-existence of market force and government regulation is beneficial to the patients.

Original languageEnglish
Pages (from-to)41-50
Number of pages10
JournalChina Economic Review
Volume54
DOIs
Publication statusPublished - Apr 2019

Scopus Subject Areas

  • Finance
  • Economics and Econometrics

User-Defined Keywords

  • Hospitals sector
  • Market-oriented reform
  • Treatment quality index
  • Undesirable outputs

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