Health expenditure analysis for urban and rural residents in China

Abstract

Objective To probe into the health expenditure and medical expenditure of Chinese people in rural and urban areas as objective references to improve the funding strategy of China's health care system. Methods Statistics annuals from 1999 to 2007 were called into play to analyze the status quo and trends of both expenditures. Results Definite proportion of funds raised for rural and urban health expenditure has grown by 200%;a distinct gap exists between the growth of per-capita medical expenditure in rural and urban residents (152. 86% in urban and 172. 77% in rural areas);medical expenditure maintains a steady growth along with rising per-capita income, yet the health consumption remains at a low level in general, especially among rural residents;since 2003, the income elasticity of the medical expenditure among rural residents keeps rising, narrowing the relative gap with urban residents. Conclusion It is recommended to push up the income of rural residents with greater resources, and to encourage the trend of marginal social medical expenditure. In addition, it is necessary to upgrade medical services, expand medical service coverage, and encourage reasonable consumption of medical services by both rural and urban residents;and to focus the role of cultural factors for greater awareness of the people in health investment and self-healthcare. Key words: Urban and rural residents; Health expenditure; Medical expenditure; Income