Health Care Costs in China: Need for Intervention

Despite government’s efforts in curbing prices, the health care cost in China remains high in comparison to its GDP due to the real absence of regulatory and supervisory mechanisms. We randomly studied patients who attended two different emergency rooms in two teaching hospitals, mainly complaining of TIA, stroke and CVA. From this study we found there is a significant difference in test fees, total fees and percentage of test fees. This difference in total cost of treatment is due to variation of loci lesions. There was no significant difference in drug fees or percentage of fees between two genders. Hence, the central and local govern-ments need to implement further policies in order to reduce or stabilise the health care costs, such as gradual increase in doctors ’ wages to decrease the deliverance of unnecessary care, partial privatisation of medical insurance enterprises, placing representatives for insurance companies in the hospitals, encouraging generic pharmaceutical manufacturing, improved distribution of hi-tech medical equipment, and better control of medical bills. Historical Aspects of Health Coverage in China Three decades between 1950 and 1980 witnessed the establishment of a system by the Chinese government that provided free health care to all its citizens at reasonable prices by covering only basic medical health services (Gao et al. 2001; State Council of China 1998; Tang et al. 1994). In urban areas health service delivery was funded and managed by the central govern-ment through a government insurance scheme (GIS) and labour insuranc