ABSTRACT

In the most recent phase of health sector reforms, the Chinese have been experimenting with public-private partnerships (PPP) with the hospital sector. This is part of a continuum in the process of commercialisation and a logical outcome of health sector reforms. This chapter presents four case studies of PPPs in select tertiary hospitals in Shanghai and Beijing. We argue that these PPPs are a step towards transiting from commercialisation to privatisation. Given the highly capital-intensive need of tertiary hospitals, a partnership of private capital and public hospitals will help to reduce the revenue gap in public hospitals. The Chinese government has facilitated PPPs by relaxing rules for the engagement of domestic and foreign capital with public hospitals. There is considerable debate on the fallout of these arrangements for a comprehensive health service system and equity of access.