ABSTRACT

The Chinese government is placing ever greater emphasis on developing healthcare and protecting people's health. Researching the sustainability of China's healthcare funding is therefore highly significant for both theory and practice. All data on China's total health expenditures in the report come from the China National Health Development Research Center. The funding system for healthcare must serve the goals of a country's healthcare objectives. It must think of how to coordinate healthcare funding with the country's rate of economic growth and hence amount available from public finance. However, since no standardized mechanisms had been put in place for funding safeguards for healthcare, spending on healthcare did not in fact increase. Since total healthcare expenses are influenced by many factors and mechanisms operating on the situation are complex, various predictions can result from different theoretical bases and assumptions. China's medical reform is just now entering a critical period in terms of both structures and mechanisms.