2009 Healthcare Reforms For 2010 and 2011, China’s increased healthcare spending primarily

2009 Healthcare Reforms

For 2010 and 2011, China’s increased healthcare spending primarily is due to the healthcare reform programs the country enacted in 2009. The reforms will allow multiple levels of government to contribute $125 billion in extra development funds for healthcare between 2009 and 2011. The funds aim for five overarching goals:

Increased Insurance Coverage

China is revising its three public insurance programs to increase healthcare coverage. Its three programs include Basic Medical Insurance for urban employees, Urban Resident Basic Medical Insurance, and New Rural Cooperative Medical Insurance.

Reformed Pharmaceutical System

In an effort to decrease dependence of hospitals on drug sales for revenue, China is implementing more market methods into the drug pricing system. Furthermore, the Chinese government will increase the standardization of the 2009 National Essential Drug List (a list of approximately 300 drugs that have government-controlled prices).

Improved Public Health

Additionally, China is working to change the overall attitude of Chinese citizens toward certain aspects of healthcare. Regular physical examinations, for example, are not commonplace among individuals in China. The Chinese government is trying to direct the nation to include this check-up and more in their preventive healthcare repertoire.

Health Facility Reorganization

Urban hospitals will be shifted into providing a gatekeeper role, where Tier 1 hospitals will refer patients to Tier 2 and Tier 3 hospitals for more advanced care when necessary.

Rural Development

An important new emphasis in the 2009 reforms is the focus on China’s rural areas. More hospitals and clinics will be built in these regions. China aims to build these new facilities in a fashion that also will establish a gatekeeper model in the rural areas.