Chang-Hong Whitney06.08.09
Even with domestic healthcare expansion in China, many Chinese people still feel the recession’s impact. Shrinking export markets resulted in massive layoffs, especially in the consumer goods industries. Violent reaction in the stock market and the bursting real estate bubble in China also reduced personal investment income. Although medical care demands unavoid-able spending, average spending in healthcare will continue to decrease as people try to avoid nonemergency care, which in turn reduces hospital income, resulting in cancelled or delayed purchase of equipment or facility construction.
Uncertain financial markets also negatively effect the confidence of investment in the medical and healthcare fields, which in the past had provided adequate financial resources and credit for hospitals to purchase or lease to own high-end equipment. Lack of resources for investment and a tighter credit market may result in rising operating burdens and restrict expansion of healthcare institutions.
Traditionally, health is at the forefront of everyone’s concerns in China. Even in this economic downturn, the Chinese still put health at the top of their priority lists. A survey conducted by the Web site for People’s Daily, China’s No. 1 government newspaper, asked visitors to respond to the question: “In this financial crisis, where can you find happiness?” A total of 85.9 percent of the voters selected “Peace, happiness and health of the family.”The closet second choice—8.1 percent of voters—selected “stable employment;” 3.9 percent selected “lower consumer prices.”Only 2.1 percent mentioned that they have some savings to weather the economic downturn. Despite the temporary reduction in healthcare spending, the need and demand are sustainable in the long run.