ABSTRACT
For low-income countries with a policy goal of providing universal health coverage, maximizing resource utilization efficiency is as important as raising extra funds for health services. Efficiency measures the amount of output in relation to a given level of input. Many previous studies have pointed out that both developed and developing countries waste substantial amounts of funds and resources in their health care systems (WHO 2010). In some countries, reforms have been adopted to improve efficiency and to provide more health promotion, preventive and treatment services to the poor. Apart from cutting costs, efficiency can be improved through increasing the quantity and coverage of health service provision for the same cost or through gaining greater benefits from investment in the health sector. The latter efficiency improvement strategy has been the focus of many developing countries, including China.
