Public hospitals to become non-profit units
July 31, 2017 Category Health, Weekly
Public hospitals in China will operate under a new system not driven by profits by 2020, according to a guideline by the central government. Public hospitals are the main provider of healthcare in China. These hospitals, which numbered more than 12,700 by the end of last year, provided 2.85 billion outpatient and emergency services last year, accounting for more than 87% of the total, according to the National Health and Family Planning Commission. Private facilities accounted for the rest. The government will increase funding to public hospitals and help them repay loans so they can retain a non-profit status. Health authorities also will establish a new merit evaluation system for Presidents of public hospitals that is not profit-oriented, highlighting the quality of medical services, cost control and satisfactory ratings from patients. The practice of markups for medications, which has been practiced in public hospitals in China for decades, will be abolished in all public hospitals before the end of September, the China Daily reports.
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