Combating healthcare cost inflation with concerted administrative actions in a Chinese province

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3 Citations (Scopus)

Abstract

This article defies the traditional notion that cost inflation in healthcare could hardly be curbed without the significant revision of economic incentive scheme, but demonstrates the possibility of containing cost inflation with concerted administrative actions in the Chinese context. It examines the case of Fujian Province that embarked on a health bureaucracy‐led policy reform without an alteration of economic levers but mainly using administrative tools to combat cost escalation. Through clearly defined, well designed, targeted and concerted administrative measures, effective cost containment is attainable in China's healthcare sector, at least in the short run. If combined well with the powerful economic instruments, administrative tools would be able to augment their effects in cost containment, provided with the government's possession of hospital ownership. At the heart of Fujian's case are the reassertion of the government stewardship, the reconstruction of the collapsed accountability mechanisms, the reconfiguration of policy instruments, and the revision of administrative incentives, rather than the decreased costs per se. Copyright © 2011 John Wiley & Sons, Ltd.
Original languageEnglish
Pages (from-to)214-228
JournalPublic Administration and Development
Volume31
Issue number3
DOIs
Publication statusPublished - Aug 2011

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inflation
health care
cost containment
costs
cost
incentive
containment
economics
escalation
possession
health policy
economic instrument
reconstruction
policy reform
accountability
reform
responsibility
China
ownership
province

Citation

He, A. J. (2011). Combating healthcare cost inflation with concerted administrative actions in a Chinese province. Public Administration and Development, 31(3), 214-228. doi: 10.1002/pad.602

Keywords

  • Policy instruments
  • Incentive
  • Administrative action
  • China
  • Cost inflation
  • Health policy