The Cyclical Behaviour of Public and Private Health Expenditure in China

Chen, Gang; Inder, Brett; Lorgelly, Paula; Hollingsworth, Bruce

doi:10.1002/hec.2957

Cited by 20 publications

(12 citation statements)

References 83 publications

(87 reference statements)

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“…It is possible that the URBMI enrollees were not so familiar with the scheme. In addition, the cautious attitude towards the insurance funds spending, especially at the initial stage of insurance implementation, may further limit the insurance effect [8].…”

Section: Discussionmentioning

confidence: 99%

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The Effect of Urban Basic Medical Insurance on Health Service Utilisation in Shaanxi Province, China: A Comparison of Two Schemes

et al. 2014

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BackgroundUrban population in China is mainly covered by two medical insurance schemes: the Urban Employee Basic Medical Insurance (UEBMI) for urban employees in formal sector and the Urban Resident Basic Medical Insurance (URBMI) for the left urban residents, mainly the unemployed, the elderly and children. This paper studies the effects of UEBMI and URBMI on health services utilisation in Shaanxi Province, Western China.MethodsCross-sectional data from the 4th National Health Services Survey - Shaanxi Province was studied. The propensity score matching and the coarsened exact matching methods have been used to estimate the average medical insurance effect on the insured.ResultsCompared to the uninsured, robust results suggest that UEBMI had significantly increased the outpatient health services utilisation in the last two weeks (p<0.10), whilst the significant effect on hospitalisation was evident in the CEM method (p<0.10). The effect of URBMI was limited in that although being insured was associated with higher health services utilisation, compared with the uninsured, none of the improvement was statistically significant (p>0.10). It was also found that compared with the uninsured, basic medical insurance enrollees were more likely to purchase inpatient treatments in lower levels of hospitals, consistent with the incentive of the benefit package design.ConclusionBasic Medical insurance schemes have shown a positive but limited effect on increasing health services utilisation in Shaanxi Province. The benefit package design of higher reimbursement rates for lower level hospitals has induced the insured to use medical services in lower level hospitals for inpatient services.

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Section: Discussionmentioning

confidence: 99%

“…The large share of individual expenditure in national health care spending has lowered levels of equitable access to health care services [7]. The lag between the rapidly growing economy and the rigid health care system has posed significant challenges for the sustainability of health care financing and delivery in China [8].…”

Section: Introductionmentioning

confidence: 99%

The Effect of Urban Basic Medical Insurance on Health Service Utilisation in Shaanxi Province, China: A Comparison of Two Schemes

et al. 2014

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“…For China, analysis nationwide time series within a multivariate Beveridge-Nelson decomposition framework in both permanent and cyclical variables. Chen et al (2013) argues that public health expenditure has pro-cyclical correlation with GDP growth. Meanwhile, analysis provincial-level panel data also find the same result, which indicates that public health expenditure can contribute to the economic development.…”

Section: Related Literaturementioning

confidence: 99%

The Impact of Public Health Expenditure on Economic Development - Evidence From Prefecture-level Panel Data of Shandong Province

Lin¹,

Wu²,

Wu³

2017

Proceedings of the International Conference on Transformations and Innovations in Management

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Public health expenditure is an indispensable part of social economy. The public has always paid close attention to public health expenditure. In order to study the quantitative relation between public health expenditure and social economic development, this paper investigates prefecture-level cities in Shandong Province, due to the unique characteristics of Shandong Province. Making theoretical and empirical contribution, this paper augments Cobb-Douglas production function with public health expenditure and empirically analyzes economic development of prefecture-level cities in Shandong Province. A panel data set is set up, followed by multivariate regression analysis. Empirical results find that public health expenditure per capita and coverage of medical insurance can significantly promote the development of social economy. At the same time, expansion of the scale of health institutions and growth of the number of health institutions cannot promote economic development. Instead, it may even hold back economic development by causing personnel redundancy and waste of resources. If the government transfers its investment focus from the scale and the speed of development of medical services to the fairness and the efficiency of medical services, public health expenditure may bring greater benefits to the improvement of both social public health condition and economic development.

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“…By contrast, Sussex et al, (2016) points out that government and private funds for medical research and development has statistically significant positive effects on national economic development. Chen et al, (2013) investigates China's nationwide time series within a multivariate Beveridge-Nelson decomposition framework with both constant variables and cyclical variables. It argues that public health expenditure has pro-cyclical correlation with GDP growth.…”

Section: Related Literaturementioning

confidence: 99%

The Impact of Public Health Expenditure on Economic Development – Evidence from Prefecture-Level Panel Data of Shandong Province

Li¹,

Wu²,

Wu³

2017

RWE

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Public health expenditure is an indispensable part of social economy. The public has always paid close attention to public health expenditure. In order to study the quantitative relation between public health expenditure and social economic development, this paper investigates prefecture-level cities in Shandong Province, due to the unique characteristics of Shandong Province. Making theoretical and empirical contributions, this paper augments the Cobb-Douglas production function with public health expenditure and empirically analyzes economic development of prefecture-level cities in Shandong Province. A panel data set is established, followed by multivariate regression analysis. Empirical results find that public health expenditure per capita and coverage of medical insurance can significantly promote social economic development. However, the expansion and growth of the number of health institutions does not necessarily promote economic development. Instead, it may even hold back economic development by causing personnel redundancy and waste of resources. If the government transfers its investment focus from the scale and the speed of development of medical services to their fairness and efficiency, public health expenditure may vastly improve both public health and economic development.

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The Cyclical Behaviour of Public and Private Health Expenditure in China

Cited by 20 publications

References 83 publications

The Effect of Urban Basic Medical Insurance on Health Service Utilisation in Shaanxi Province, China: A Comparison of Two Schemes

The Effect of Urban Basic Medical Insurance on Health Service Utilisation in Shaanxi Province, China: A Comparison of Two Schemes

The Impact of Public Health Expenditure on Economic Development - Evidence From Prefecture-level Panel Data of Shandong Province

The Impact of Public Health Expenditure on Economic Development – Evidence from Prefecture-Level Panel Data of Shandong Province

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