Abstract

Medical service pricing reform was considered as one of the focuses of China's remarkable health reform. This paper preliminarily assessed the roles of medical service pricing in the context of China's healthcare system. Specifically, we described the potential roles of medical service pricing in China and pointed out relevant challenges that emerged in practice as the result of reform-related activities. Multiple constraint factors that might have induced undesired outcomes were then recognized, including the excessive diversity and specialization of medical services, the price inelasticity of patients' demand, and the inadequate capability of both medical institutions and administrations. Finally, we provided policy recommendations to inform the ongoing medical service pricing reform in China from a long-term perspective.

Highlights

  • Pricing policies are the key components of China’s price management system, which are designed to ensure price stability as well as to balance the interests of all stakeholders engaged in the markets through price setting and regulation [1, 2]

  • Since the launch of medical service pricing reform, significant breakthroughs have been made with both remarkable improvements and lessons learned

  • We assessed the potential roles of medical service pricing in China by introducing four policy goals of medical service pricing, including interest coordination, resource allocation, financial compensation, and incentive effect

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Summary

Introduction

Pricing policies are the key components of China’s price management system, which are designed to ensure price stability as well as to balance the interests of all stakeholders engaged in the markets through price setting and regulation [1, 2]. As an essential part of national pricing policy, medical service pricing policy in China has gone through similar evolutions just as the whole price management system. Medical price management in China has evolved through three main stages: “strict regulation” (1949–1979), “decentralization” (1980–1999), and “authority delegation with proper regulation” (2000 onwards), with the form of medical service pricing evolving from government-determined

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