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Original Research
Expanding public health in China: an empirical analysis of healthcare inputs and outputs
F. Deng a,c, J.H. Lv b, H.L. Wang c, J.M. Gao d,*, Z.L. Zhou d
a Xi'an Jiao Tong University Health Science Center, Xi'an, China b Central Hospital of Baoji City, Baoji, Shaanxi Province, China c Baoji Centre for Disease Control and Prevention, Baoji, China d Xi'an Jiao Tong University, School of Public Policy and Administration, Xi'an, China
a r t i c l e i n f o
Article history:
Received 11 March 2016
Received in revised form
18 August 2016
Accepted 12 October 2016
Available online 22 November 2016
Keywords:
Public health
China's health reform
Input and output
Empirical analysis
* Corresponding author. Xi'an Jiao Tong Univ E-mail address: gaojianmin2016@126.com
http://dx.doi.org/10.1016/j.puhe.2016.10.007 0033-3506/© 2016 The Royal Society for Publ
a b s t r a c t
Objectives: The Chinese Government claims that China's health policy is primarily focused
on prevention. However, this does not appear to be the case. Researchers with an interest
in China's health policy may be aware that the Chinese Government launched a health
reform in 2009 to improve the health status of the entire population by 2020.1 This health
reform has been in place for 7 years, and only 4 years now remain to achieve the overall
objectives by 2020. This study analyzed the main inputs and outputs of China's health
reform in order to identify the main problems and highlight the major challenges. It is
hoped that this study will provide some reference for health reform in China and other
developing countries.
Study design: This study focused on health, with human resources and healthcare costs as
the main input indicators, and 2-week prevalence of illness and prevalence of non-
communicable diseases as the main output indicators. By longitudinal comparison of
real data from 2009 to 2014, the effects of China's health reform were analyzed to identify
the main challenges, enabling suggestions to be made for future reference.
Methods: This was a retrospective analysis of empirical data. Data were collected between
2009 and 2014 as follows: (1) data on the distribution of healthcare professionals were
collected from the Statistical Bulletin of China's Health Development, issued by the Na-
tional Health and Family Planning Commission every year between 2009 and 2014; (2) data
on government health expenditure were obtained from the Annual National Public Fiscal
Expenditure Data, released by the Financial Ministry of the People's Republic of China from
2009 to 2014; (3) data on the prevalence of chronic diseases, 2-week prevalence of illness,
residents' medical service demands, and utilization of health services were obtained from
the Fourth and Fifth National Health Care Surveys in 2008 and 2013; and (4) data on total
healthcare expenditure, medical expenditure and out-of-pocket payments were obtained
from the 2015 China Statistical Yearbook.
Results: From 2009 to 2014, China's healthcare human resources were distributed primarily
in hospitals that focus on providing treatment. By 2014, 62.5% of the health professionals
ersity Health Science Center, No. 76 Yanta west, Xi'an 710061, China. Fax: þ86 02982656259. (J.M. Gao).
ic Health. Published by Elsevier Ltd. All rights reserved.
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 474
and technical personnel were distributed in hospitals. From 2009, the Chinese Government
spent more money on health care than previously, with approximately 67% spent on
disease treatment and 14.19% spent on disease prevention. However, the 2-week preva-
lence of illness increased by 5.2 percentage points, and the prevalence of chronic diseases
increased by 9 percentage points. Meanwhile, residents' out-of-pocket payments for health
care were as high as 50.61% of the total healthcare expenditure and were particularly high
in rural areas.
Conclusion: China should adjust the direction of its health reform as soon as possible to
focus on improving health status rather than treatment of disease. In the future, as China's
population ageing trend intensifies, China must take effective measures or the country's
non-communicable disease rates will continue to increase. To meet this challenge, China's
health reform should take effective measures to control the rising trend of the incidence of
non-communicable diseases. First, China should focus on the core goal of its health reform
policy, which is disease prevention. Second, China should focus on strengthening public
health systems to effectively prevent and control key epidemic diseases. Third, China
should increase the number of public health personnel, improve the level of education and
training of public health personnel and increase the input of funds into the field of public
health as soon as possible.
© 2016 The Royal Society for Public Health. Published by Elsevier Ltd. All rights reserved.
Introduction
The global population is ageing rapidly due to a decline in
fertility and an increase in life expectancy.2 Longevity is our
precious wealth.3 Older people are a wonderful resource for
their families and communities, and they contribute to the
formal and informal workforce. Our elder population is a re-
pository of knowledge and can help us to avoid making the
same mistakes made in the past. Indeed, if we can ensure that
older people live healthier as well as longer lives, if we can
make sure that we are stretching life in the middle and not
just at the end, these extra years can be as productive as any
others. The societies that adapt to this changing demographic
can reap a sizeable ‘longevity dividend’ and will have a
competitive advantage over those that do not. However, the
extent of these human and social resources, and the oppor-
tunities available to each of us as we age, will be heavily
dependent on one key characteristic: health. If people are
living these additional years in good health, their ability to do
the things they value will have few limits. However, if these
additional years are dominated by a decline in physical and
mental capacities, the implications for older people and so-
ciety may be much more negative.4 Unfortunately, there is
little evidence that older people are healthier than their par-
ents at the same age, although it is generally believed that life
extension is accompanied by a health extension.2 Many
health problems faced by the elderly are related to chronic
diseases, particularly non-communicable diseases (NCDs).
Most NCDs can be prevented or delayed by adopting healthy
behaviours.2 However, prevention and control of NCDs is not
just an issue for elderly people; healthy ageing begins at an
early stage of the health behaviour.5 In other words, preven-
tion and control of NCDs requires the whole population to act
together.
Major changes are associated with development of the
economy and society, including the spectrum of human dis-
eases, population age structure, life behaviours and environ-
mental factors. NCDs represent the first factor to threaten the
health of human beings and become a public health problem
of global concern.6 Data show that 20% of non-infectious
diseases occur in high-income countries, and 80% of the
deaths due to non-infectious diseases occur in low- and
middle-income countries. Deaths from chronic diseases in
low- and middle-income countries are more serious.7 As the
leading cause of death globally, NCDs were responsible for 38
million (68%) of the world's 56 million deaths in 2012. More than 40% (16 million) of them were premature death in people
aged less than 70 years. Almost three-quarters (28 million) of
all NCD deaths and the majority (82%) of premature deaths
occur in low- and middle-income countries.8
China, the country with the largest population in the world
(>1.3 billion), has made remarkable progress over the past 20 years, both economically and in terms of public health,
including increasing life expectancy by one-third, decreasing
childhood mortality rates by more than one-half, and a three-
fold increase in the number of hospital beds.9 However, China
still faces challenges in many aspects of its healthcare sys-
tem.10 Therefore, China launched a healthcare reform in 2009
that aimed to establish a basic universal healthcare system for
the population of China. By 2013 (the midpoint), China's health reform had led to several achievements. Over 90% of residents
across the nation were covered by basic health insurance.11
However, patient dissatisfaction was high, and conflicts be-
tween patients and doctors or hospitals had increased.12
Furthermore, the prevalence of chronic diseases was
increasing with the ageing population.13 In common with
other countries, China is facing the challenge of an ageing
population; the population aged �65 years accounted for 7% of the total population in 2000,14 and this increased to 10.1% in
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 4 75
2014.15 China's economic growth and development outcomes over the past 30 years are enviable. However, societal devel-
opment in China lags behind the world's most economically developed countries.16 The United Nations Development
Programme announced the results of the human develop-
ment index in 2010, and China ranked 89th among 169 coun-
tries.17 The health-adjusted life expectancy of Chinese
residents is 66 years, which is 10 years less than the life ex-
pectancy seen in a group of 20 major developed countries.18
It is the general aim of China's health reform to increase the health status of Chinese residents by 2020.19 With only 4
years remaining to achieve this goal, the effect of China's health reform is worth further research. It has been reported
that the health level of China's residents was at the forefront of developing countries in 201220 and was generally in the
range of middle- and high-income countries in 2015.21
Are these reports really true? We should analyze these
findings scientifically. First, health is not only the absence of
disease but also the sum of physical, mental and social
health.22 Second, after careful inspection of the original report,
the main bases for the above-mentioned indicators are
increased per-capita life expectancy, decreased maternal
mortality and decreased infant mortality.20,21 Can these in-
dicators reflect the true health status of the residents? Third,
life expectancy can reflect the survival time of the population,
but not the quality of life. China's per-capita life expectancy was only 35 years in 1949. At that time, the impact of infectious
diseases on per-capita life expectancy was up to 70%.23 Sub-
sequently, the Chinese Government implemented the national
patriotic health campaign and other major disease prevention
and control actions. Average life expectancy in China
increased to 67.9 years in 1981,20,23 and then entered a slow
growth period reaching 75.8 years in 2014.20,21 Fourth, over the
past 30 years, the study and application of population health
status evaluation, which is based on the comprehensive study
of population health, has been advancing rapidly in developed
countries and international organizations.24e29 It compre-
hensively considers death, disease and other non-fatal health
outcomes information for a population using a single mea-
surement of population health status on behalf of the overall
population.27 Summary measures of population health can be
divided into expected health and health disparity of two types
of index; the former is also known as ‘healthy life expectancy’.
Sanders29 proposed the concept of ‘effective life years’ in 1964,
and Sullivan30 proposed the concept of disability-free life ex-
pectancy. Katz et al.31 proposed the concept of active life ex-
pectancy (ALE) in 1983. ALE is an important indicator to assess
the health status of the elderly and is based on the self-care
ability of the elderly.31 Hyder et al.32 discussed the disease
burden of Ghana in 1998, and proposed ‘healthy life years’. In
2000, the World Health Organization (WHO) proposed the use
of ‘disability-adjusted life expectancy’ (DALE) for population
health indicators, and the use of the Sullivan method to
calculate DALE for all 191 countries.33 In 2001, WHO proposed
changing DALE to ‘health-adjusted life expectancy’.34 The
global average life expectancy of newborns was 71.4 years in
2015, which is 5 years higher compared with those born in
2000. However, the health-adjusted life expectancy of new-
borns was only 63.1 years in 2015.35 In Chinese cities, including
Beijing,36 Shanghai,37 Zhejiang38 and Chongqing,39 research
has found a large gap between healthy life expectancy and life
expectancy. Health is the foundation of life extension, but the
extension of life is not necessarily healthy. Fifth, China has
controlled the rates of infectious diseases, maternal mortality
and infant mortality at lower levels than ever. The People's Republic of China Infectious Disease Prevention law stipulates
that the 39 key infectious diseases are required to be reported.
These infectious diseases are divided into three categories (A,
B and C) and include 39 types of specific infectious diseases,
which are the basic common infectious diseases in China.40
According to statistics, the mortality rate from ‘legal’ infec-
tious diseases in China (per 100,000 statutory infectious dis-
eases) was 1.22, the maternal mortality ratio (per 100,000 live
births) was 21.7, and the infant mortality rate (per 1000 live
births) was 8.9 in 2014.41 In 2012, the number of deaths due to
non-infectious diseases accounted for 87% of all deaths in
China, whereas infectious, maternal, perinatal and nutritional
disorders accounted for only 5% of all deaths in China.42
Methods
Selection of evaluation index
In China, health reform inputs include government attention,
policy preferences, increasing expenditure for health and
increasing professional health personnel. However, the main
objective data that can be measured are health expenditure and
healthpersonnel.Accordingtothesourceofexpenditure,health
expenditure mainly includes government, social and personal
investment. According to the direction of flow of health expen-
diture, that expenditure mainly includes disease treatment, and
disease prevention and control. In other words, China's health expenditure is mainly spent on medical institutions (disease
treatment) and public health institutions (disease prevention).
The outputs of China's health reform include outpatient visits, hospitalization, amount of reimbursement for medical
expenses and number of public health services. Although
these indicators are well documented, they do not represent
the core index. The core goal of China's health reform is to improve the health of residents, rather than just to solve the
problem of disease treatment. Since health reform was
introduced in China, with more attention focused on quality
of life, NCDs have become the primary healthcare factor in
China. Considering data availability, the authors chose to use
the prevalence of NCDs and 2-week prevalence of illness as
key indicators to evaluate the health status of residents to
evaluate the core outputs of China's health reform. Fig. 1 shows the input and output model of China's health reform.
Data source
Data for this study were collected from the following public
resources:
(1) Data on the distribution of healthcare professionals
were obtained from the Statistical Bulletin of China's Health Development issued by the National Health and
Family Planning Commission every year between 2009
and 2014.
Input of China’s health reform
Input of expenditure
Input of personnel
Hospital Health insurance Community health Public health
Hospital Community health Public health
Output of China’s health reform
Prevention
Cure
Health
Fig. 1 e The input and output model of China's health reform.
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 476
(2) Data on government health expenditure were obtained
from the Annual National Public Fiscal Expenditure
Data released by the Financial Ministry of the People's Republic of China from 2009 to 2014.
(3) Data on the prevalence of chronic diseases, 2-week
prevalence of illness, residents' medical service de- mands and utilization of health services were obtained
from the Fourth and Fifth National Health Care Surveys
in 2008 and 2013.
(4) Data on total healthcare expenditure, medical expen-
diture and out-of-pocket payments were obtained from
the 2015 China Statistical Yearbook.
Definitions
In China, healthcare human resources include medical and
healthcare professionals (e.g. physicians, physician assis-
tants, dentists, obstetricians, registered nurses, pharmacists,
physiotherapists, optometrists) and healthcare-associated
professionals who support implementation of health care,
including public health administrators, medical educators,
medical research scientists and other support staff who work
in hospitals.
Healthcare human resources are allocated to hospitals,
primary care facilities and public health institutes (PHIs).
Hospitals in China are organized as a three-tier system (pri-
mary, secondary and tertiary institutions) according to the
hospital's ability to provide medical care and medical educa- tion, and to conduct medical research.9 Primary care facilities
include township healthcare clinics in rural districts, and
community healthcare clinics and service centres in urban
areas. PHIs are non-profit organizations that improve the
public's health by fostering innovation, leveraging resources and building partnerships across sectors, including govern-
ment agencies, communities, the healthcare delivery system,
media and academia.
Total healthcare expenditure includes government
expenditure, social expenditure and out-of-pocket payments
made by the population. Government expenditure is expen-
diture incurred by central and local government authorities,
including spending on health care and population and family
planning, subsidies to health insurance, and health adminis-
tration costs. Social expenditure is expenditure incurred by
social funds, including spending on social health insurance,
private health insurance, sociomedical assistance and dona-
tions, and administration costs. Out-of-pocket payments are
healthcare costs that are not reimbursed by any type of in-
surance scheme, including deductibles, coinsurance and
copayments for covered services, plus all costs for services
that are not covered. Out-of-pocket healthcare payments per
capita were calculated as the sum of total healthcare expen-
diture of the population divided by the number of people. The
social health insurance scheme in the Chinese healthcare
system includes a new rural cooperative medical scheme
(NCMS), urban resident basic medical insurance (URBMI), and
urban employee basic medical insurance (UEBMI).
Indicators
(1) Two-week prevalence of illness refers to the number of
diagnosed patients among subjects during a 2-week
survey, divided by the total number of subjects in the
survey.
(2) Chronic disease is defined as any NCD that typically
lasted for �1 year and required ongoing medical atten- tion and/or limited activities of daily living. The preva-
lence of chronic disease refers to the number of patients
suffering from chronic conditions within 6 months of
the survey in the total population of that year.
(3) Annual average number of visits was calculated as the
total number of visits for the year/population for that
year.
(4) Annual average in-hospital rate was calculated as the
total number of patients discharged from hospital in the
year/total population for the year � 100%. (5) Percentage of out-of-pocket healthcare payments per
capita out of total healthcare expenditure was calcu-
lated as out-of-pocket healthcare payments per capita/
out-of-pocket healthcare payments per capita þ social insurance expenditure (NCMS þ URBMI þ UEBMI) � 100%.
(6) Out-of-pocket healthcare payments per capita as a
percentage of average annual household living con-
sumption expenditure per capita was used as a proxy
indicator to estimate the financial burden of health care
placed on the population. Annual household living
consumption expenditure per capita was defined as
total consumption expenditure for daily life including
food, clothing, housing, education, health care, trans-
portation and so forth.
Results
Healthcare resource allocation during healthcare system reform from 2009 to 2014
Healthcare human resources In China, health workers are all staff members who work in
health institutions. Health institutions include hospitals, PHIs
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 4 77
and grassroots medical and health institutions (including
township hospitals, village clinics, urban community health
service centres and community health service stations).
Health workers are divided into health professional and
technical personnel, and administrative logistics manage-
ment service personnel. Health professional and technical
personnel are those who have professional health knowledge
and are engaged in healthcare services in health professional
technical posts. This group includes all types of physicians,
docimasters, pharmacists and nurses. As shown in Table 1,
more than half of these professionals work in hospitals, over
one-third work in primary care facilities and approximately
9% work in PHIs. Most importantly, the allocation of health
professional and technical personnel changed unidirection-
ally between 2009 and 2014. Approximately 5% of medical and
healthcare professionals and 4% of healthcare-associated
professionals migrated from primary healthcare facilities to
hospitals or PHIs. There were no significant changes in the
number of professionals in PHIs. Among them, the number of
medical and healthcare professionals was 1.4-fold higher than
the number of healthcare-associated professionals, and this
did not change significantly between 2009 and 2014 (1.4- vs
1.35-fold), as shown in Table 1.
Healthcare financial resources Change in total health expenditure and composition from 2009 to 2014. From 2009 to 2014, total healthcare expenditure in China increased approximately two-fold from 1.75 to 3.53
trillion RMB. All sources of expenditure, including government
expenditure, social expenditure and out-of-pocket healthcare
payments by the population, increased significantly (2.20-,
2.18- and 1.72-fold, respectively), as shown in Table 2. More-
over, the percentage of government expenditure out of total
expenditure increased from 27.5% to 30%, the percentage of
out-of-pocket payments decreased from 37.5% to 32%, and the
percentage of social expenditure increased from 35.1% to
38.1%. In 2009, the percentage of government expenditure was
slightly more than one-quarter of total expenditure.
Components of government healthcare expenditure from 2009 to 2014. As shown in Table 3, government healthcare
Table 1 e Healthcare resource allocation during healthcare sys
Year Medical and healthcare professionals
Total workers
Hospital Primary care facilities
Public health institutio
n % n % n %
2009 778.1 395.8 50.9 315.2 40.5 60.1 8.6
2010 820.8 422.7 51.5 328.2 40.0 62.5 8.5
2011 861.6 452.7 52.5 337.5 39.2 64.1 8.3
2012 911.6 493.7 54.1 343.7 37.7 67.0 8.2
2013 979.0 537.1 54.9 351.4 35.9 82.6 8.4
2014 1023.4 574.2 56.1 353.7 34.6 87.5 8.5
Data source: Statistical Bulletin of China's Health Development, issued by 2009 and 2014. Unit: 10,000. a Healthcare-associated professionals are health professionals and healt
pharmacists, nurses and so forth.
expenditure increased over two-fold from 399 to 926 billion
RMB. Fig. 2 depicts the four categories that accounted for the
majority of the expenditure (approximately 80e90% of the
total), including hospitals, primary care, public health care
and social basic medical insurance. The 6-year growth trends
of these four components of government healthcare expen-
diture are shown in Fig. 2. The same four components as
percentages are shown in Fig. 3. Social basic medical insur-
ance has always been the main component of government
healthcare expenditure, and this increased rapidly over two-
fold in terms of absolute spending, accounting for over half
of government healthcare expenditure. From 2009 to 2014,
although the Chinese Government's direct investment in hospitals decreased from 18.6% to 14.8%, China's basic medi- cal insurance funds mainly go to hospitals. In total, 65% of
health expenditure by the Chinese Government is on hospi-
tals, 15% is on public health care and 10% is on primary care
(Table 3).
Achievements of healthcare system reform from 2009 to 2014
Two-week prevalence of illness and prevalence of chronic diseases In China, the data on 2-week prevalence of illness and prev-
alence of NCDs came from an analysis report of a national
health service survey performed every 5 years. The data on 2-
week prevalence of illness came from the Chinese Fifth Na-
tional Health Service Survey, conducted in 2013. The popula-
tion reporting 2-week prevalence of illness was 24.1% in 2013,
which represented a 5.2 percentage point increase compared
with the Fourth National Health Service Survey in 2008.43 The
population aged �15 years reporting prevalence of NCDs was 33.1% in 2013, which was 9 percentage points higher than in
2008.43
Healthcare service utilization rate As shown in Table 4, the overall annual number of patient
visits increased from 54.9 billion visits per year in 2009 to 76.0
billion visits per year in 2014. Adjusted for population, the
average annual number of clinic visits per person also
tem reform from 2009 to 2014.
Healthcare-associated professionalsa
ns Total
workers Hospital Primary
care facilities Public health institutions
n % n % n %
553.5 320.0 57.8 183.3 33.1 46.6 8.4
587.6 343.8 58.5 191.4 32.6 48.7 8.3
620.3 370.6 59.7 196.3 31.6 49.8 8.0
667.6 405.8 60.8 205.2 30.7 53.2 8.0
721.1 442.5 61.4 213.8 29.6 60.9 8.4
759.0 474.2 62.5 217.7 28.7 63.2 8.3
National Health and Family Planning Commission every year between
h technical personnel, including all types of physicians, docimaster,
Table 2 e Contribution of China's healthcare financial resources from 2009 to 2014.
Year Expenditures
Total Government % Social % Out-of-pocket %
2009 1754.2 481.6 27.46 615.4 35.08 657.1 37.46
2010 1998.0 573.2 28.69 719.7 36.02 705.1 35.29
2011 2434.6 746.4 30.66 841.6 34.57 846.5 34.77
2012 2811.9 843.2 29.99 1003.1 35.67 965.6 34.34
2013 3166.9 954.6 30.14 1139.4 35.98 1072.9 33.88
2014 3531.2 1057.9 29.96 1343.8 38.05 1129.5 31.99
Data source: China statistical yearbook, 2015. Unit: billion RMB (¥).
Table 3 e Components of Chinese Government's healthcare expenditure from 2009 to 2014.
Year Government healthcare expenditure
Hospitals Primary care Public health care Social basic medical insurance
RMB RMB % RMB % RMB % RMB %
2009 399.4 74.2 18.6 39.5 9.9 29.3 7.3 189.2 47.4
2010 480.4 87.6 18.2 44.8 9.3 76.9 16.0 222.8 46.4
2011 643.0 94.0 14.6 61.4 9.6 111.7 17.4 325.1 50.6
2012 724.5 101.3 14.0 86.3 11.9 110.2 15.2 365.7 50.5
2013 828.0 115.7 14.0 91.8 11.1 120.6 14.6 429.4 51.9
2014 926.3 137.1 14.8 93.8 10.1 131.4 14.2 483.5 52.2
Data source: Annual National Public Fiscal Expenditure Data released by the Financial Ministry of the People's Republic of China from 2009 to 2014. %, percentage of government healthcare expenditure. Unit: billion RMB (¥).
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012 2013 2014
Social Basic Medical Insurance
Public Healthcare
Primary Care
Hospitals
RB M
(b ill
io n)
Fig. 2 e Flow of government expenditure on health.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014
Social Basic Medical Insurance
Public Healthcare
Primary Care
Hospitals
% o
f t ot
al e
xp en
di tu
re
Fig. 3 e Proportion of the flow of government expenditure on health.
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 478
Table 4 e Healthcare service demands and utilization rate.
Year Annual patient visits (billions)
Annual clinic visits per person (times)
Annual hospital discharges (million people)
Hospital admission rates (%)
2009 54.90 4.20 132.50 9.90
2010 58.40 4.34 141.74 10.50
2011 62.70 4.63 152.98 11.30
2012 68.90 5.10 178.12 13.20
2013 73.10 5.40 192.15 14.10
2014 76.00 5.60 204.41 14.90
Data source: Statistical Bulletin of China's Health Development, issued by National Health and Family Planning Commission every year between 2009 and 2014.
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 4 79
increased (from 4.2 visits in 2009 to 5.6 visits in 2014). The
overall annual number of patients discharged from hospital
increased from 133 million in 2009 to 204 million in 2014. The
hospital admission rate increased significantly from 9.9% in
2009 to 14.9% in 2014. The total annual number of patients
discharged from hospital increased from 132 million in 2009 to
204 million in 2014, corresponding to the hospitalization rate
that increased from 9.9% to 14.9%.
Out-of-pocket healthcare payments per capita In China, healthcare expenditure can be divided into two main
categories: basic medical insurance from government funds
and out-of-pocket payments by individuals. Other resources
are available as supplements, including social medical aid and
commercial healthcare insurance, as shown in the data from
the Chinese Financial Ministry and the Chinese Insurance
Regulatory Commission.44,45
As shown in Table 5, China spent 1.8 trillion, or 5.15% of its
gross domestic product (GDP), on health care in 2009. This had
increased to 3.5 trillion by 2014, but the percentage of GDP had
increased only slightly to 5.56%. Out-of-pocket payments by
individuals increased from 0.7 trillion in 2009 to 1.2 trillion in
2014. Furthermore, as the largest part of the ‘healthcare
spending pie’, its share as a percentage of total healthcare
expenditure decreased from 64.9% in 2009 to 51.6% in 2014.
The majority of healthcare expenditure went on basic medical
insurance, and these funds increased significantly from 355
billion to 1102 billion. Other contributions came from social
insurance expenditure (NCMS þ URBMI þ UEBMI), which also
Table 5 e Contributions of healthcare expenditure.
Year Total healthcare expenditure
(trillion RMB [¥])
Healthcare expenditure in GDP (%)
Out-of-pocket payments (billions RMB [¥])
NCM (billio RMB
2009 1.75 5.08 657.1 92.3
2010 2.00 4.89 705.1 118.
2011 2.43 5.03 846.5 171.
2012 2.81 5.26 965.6 240.
2013 3.17 5.39 1072.9 290.
2014 3.53 5.55 1129.5 289.
Abbreviations: NCMS, new rural cooperative medical scheme; URBMI, ur
medical insurance.
Data source: China statistical yearbook, 2015.
increased: NCMS increased from 92 billion to 289 billion;
URBMI increased from 41 billion (in 2011) to 144 billion; and
UEBMI increased from 263 billion to 670 billion.
Financial burden of health spending by household Table 6 shows the average annual household living con-
sumption expenditure per capita, the out-of-pocket health-
care payments per capita, and the financial burden of health
care placed on the population from 2009 to 2013. The absolute
spending levels for living consumption expenditure and out-
of-pocket healthcare payments increased significantly for
both urban and rural residents. On average, healthcare ex-
penses accounted for approximately 7% of the household
budget for urban residents, and this remained virtually un-
changed over the 5 years from 2009 to 2013. However, for
residents living in rural areas, healthcare expenses accounted
for approximately 8% of the household budget in 2009, and
this increased significantly in 2013 by approximately 2 per-
centage points. The reader should note that the corresponding
data for 2014 did not have the same statistical calibre; thus,
Table 6 does not show corresponding data for 2014.
Discussion
An objective fact: China's public health team is very weak
In China, hospitals are mainly responsible for the treatment of
disease. Primary care facilities not only undertake general
S ns [¥])
URBMI (billions RMB [¥])
UEBMI (billions RMB [¥])
Basic medical insurance (billions RMB [¥])
Percentage of out-of-pocket healthcare
payments per capita out of
total healthcare expenditure (%)
e 263.0 355.3 64.91
8 e 327.2 445.9 61.26
0 41.3 401.8 614.2 57.95
8 67.5 486.9 795.2 54.84
9 97.1 583.0 971.0 52.49
0 143.7 669.7 1102.4 50.61
ban resident basic medical insurance; UEBMI, urban employee basic
Table 6 e Average annual out-of-pocket healthcare payments per capita from 2009 to 2013.
Year Urban residents Rural residents
Living consumption (RMB ¥) per capita
Out-of-pocket health care (RMB ¥)
per capita
% Living consumption (RMB ¥) per capita
Out-of-pocket health care (RMB ¥)
per capita
%
2009 12,264.5 856.4 6.98 3504.8 287.5 8.20
2010 13,471.5 871.8 6.47 3859.3 326.0 8.45
2011 15,160.9 969.0 6.39 4733.4 436.8 9.23
2012 16,674.3 1063.7 6.38 5414.5 513.8 9.49
2013 18,022.6 1118.3 6.20 6112.9 613.9 10.04
Data source: China statistical yearbook, 2014.
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 480
disease diagnosis and treatment but also undertake basic
public health services. PHIs are primarily responsible for dis-
ease prevention and control and health promotion, including
health education, maternal and child health care, and mental
health institutions and other institutions.
Scientific health personnel allocation should be stronger in
primary care facilities to solve primary health care and basic
medical problems of residents. PHIs are better suited to solve
the problems of prevention and control of major diseases,
reducing the incidence of disease from the source, and
improving the health level of residents. Hospitals are the
professional institutions for the diagnosis and treatment of
rare and serious diseases.
As shown in Table 1, the number of medical and healthcare
professionals in China has increased year by year since
China's health reform; more than half work in hospitals, approximately one-third work in primary care facilities, and
fewer than 10% work in PHIs. The allocation of healthcare-
associated professionals in hospitals increased significantly
from 2009 to 2014, reaching 62.5% in 2014. The allocation of
healthcare-associated professionals in primary care facilities
has decreased year by year, down to 28.7% in 2014. The allo-
cation of healthcare-associated professionals in PHIs
remained at approximately 8%. According to statistics, there
are 2.12 practising (assistant) physicians, 2.2 registered nurses
and 0.1 disease control institutions of professional and tech-
nical personnel per 1000 resident population in China.40 The
majority of disease prevention and control personnel are
engaged in the prevention and control of infectious diseases,
whereas fewer people engage in the prevention and control of
NCDs. According to statistics from the Chinese Centre for
Disease Control, the disease control agencies in China have
8264 NCD prevention and control personnel and 3656 full-time
NCD prevention and control personnel, accounting for 4.4%
and 1.9%, respectively, of the total number of Chinese disease
prevention and control personnel in 2011.46
A clear contrast: the high cost of disease treatment and the slow decline in personal cash health expenditure
As shown in Tables 2, 3 and 5, China's total health expenditure doubled from 2009 to 2014. Government health expenditure in
2014 was 2.3 times higher than that in 2009. China's basic medical insurance expenditure (including NCMS, URBMI and
UEBMI) in 2014 was 3.1 times that in 2009. In 2014, the total
medical expenditure in China was 2.2 times that in 2009.
Personal cash health expenditure as a proportion of total
medical expenditure declined 14.29 percentage points from
2009 to 2014, with an average annual decline of 2.38 percent-
age points. China's high input model of treatment of disease did not significantly reduce the burden of individual residents' medical treatment; Chinese residents' personal cash health expenditure as a proportion of total medical expenditure was
still more than 50% in 2014. In many countries, although the
residents have health insurance, they still face the risk of
catastrophic health expenditure.47,48 As shown in Table 3,
although 50% of government health expenditure is spent on
construction of the basic medical security system, the medical
burden on Chinese residents is still heavy. As shown in Table
6, based on actual payment capacity of urban and rural resi-
dents, the medical burden of rural residents increased each
year from 2009 to 2013.
A historic choice: urgent need to build a new healthcare model
At present, China is facing a historic choice between placing
health or disease treatment at the core of health care.
Objective analysis of China's current situation requires careful attention, as follows.
If China does not control the incidence of disease, health resources will never meet the needs of residents in the future Although prevention of disease can save more lives than
treatment of disease and is more cost-effective, most re-
sources are still being used for treatment.49e53 As shown in
Table 4, the number of medical visits increased to 21.1 billion
and the number of hospital visits increased to 71.91 million
from 2009 to 2014. Although the actual use of medical services
has increased rapidly in China, the proportion of patients who
had not received treatment for 2 weeks was 15.5%, and the
proportion of residents who were hospitalized was 17.1% in
2013.43 The main reason is the growing population. In 2013,
the prevalence of chronic diseases was 33.1%, representing an
increase of 9 percentage points compared with 2008.43 The 2-
week prevalence of illness in the survey population was 24.1%,
which was 5.2 percentage points higher compared with
2008.43 Many studies have shown that the incidence of chronic
disease has increased in China.54e59 Previous studies on the
rapid increase in the prevalence of chronic diseases have
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 4 81
suggested that elimination or control of the risk factors are
critical steps in the prevention and intervention of chronic
disease, rather than the treatment.48,60 Studies have sug-
gested that the challenges of chronic diseases, such as dia-
betes, continue to rise, and it is more important to strengthen
the NCD risk factors than focus on disease treatment in-
terventions.60,62 China's total population was 13.6 billion in 2013, and an increase in prevalence of one percentage point
means an additional 13.6 million patients. Although China's GDP ranks second in the world,63 the per-capita GDP level is
low.64 As a developing country, China's healthcare resources are still relatively limited. Therefore, it is very important to
strengthen the prevention and control of disease.
The high incidence of chronic diseases should be controlled as soon as possible Various factors have led to the high incidence of chronic dis-
eases in China. According to the Chinese health service sur-
vey, the prevalence of chronic diseases was significantly
higher in people aged �35 years, and prevalence in the older age group was significantly higher than that in the low age
group.65 The results show that the ageing population is one of
the factors leading to the high incidence of chronic diseases.
With the improvement of living conditions for Chinese resi-
dents, the problem of an unhealthy diet is more serious, and
problems of obesity and overweight have been highlighted.66
At the same time, smoking, alcohol use, reduced levels of
physical activity and environmental pollution also lead to
increased prevalence of chronic diseases.66 Of course, given
the focus on the health of residents, the number of people
participating in annual health examinations will increase,
which will increase the number of patients with chronic dis-
eases. However, this is not the main factor leading to the
increased prevalence of chronic diseases in China. First, ac-
cording to China's health reform policy, only residents aged �65 years have a free physical examination once per year.67 Second, according to China's relevant policies, primary healthcare institutions are responsible for free physical ex-
aminations of the elderly, and cancer and other chronic dis-
eases cannot be diagnosed at these facilities due to limited
technology. Third, due to limited economic conditions and the
fact that health literacy is not high,68 Chinese residents are
unlikely to undergo physical examinations at their own
expense. Experiences in many developed countries, such as
Finland, Britain, Canada, France and Germany, have shown
that many chronic disease prevention measures recom-
mended in WHO's Framework Convention on Tobacco Control and multiple drug therapy interventions used for cardiovas-
cular disease in high-risk populations are very economical
and effective.69e71 Moreover, control often appears much
sooner than expected. Some Chinese chronic disease in-
terventions have proved to be cost-effective and have long-
term effects for health improvement.72,73 Experience from
developed countries shows that reducing or eliminating risk
factors will improve the residents' health in China, and this will be noticed in a matter of years rather than decades.74,75 In
view of the high incidence of chronic diseases, the Chinese
Government should take effective comprehensive
intervention measures as soon as possible to cope with the
severe challenges of chronic diseases.
It is critical to build a new healthcare model with health promotion at the centre Improving the health of the entire population is the sacred
duty of the government.76 Facing the challenge of the ageing
population, the high incidence of chronic diseases, and
other health problems, the Chinese Government should
establish a system to protect the population's health, strengthen the Government's responsibility, strengthen cooperation between departments, mobilize the enthusiasm
of society as a whole and build a good environment for the
promotion of public health. At present, the most pressing
problem is strengthening the construction of the public
health system, and strengthening the prevention and con-
trol of major diseases. Specific recommendations are as
follows:
� Establish the core position of health goals. China's government-related policies, plans and input should be
guided by the goal of health.
� Establish the dynamic security mechanism of public health. The Chinese Government should focus on changes
in the health of residents to establish the dynamic security
mechanisms of professional PHIs and primary healthcare
institutions to ensure that PHI personnel and funds can
meet the basic needs of the work.
� Build a collaborative public health management mecha- nism. Many studies show that collaborative public health
management can effectively improve the overall perfor-
mance of local government management.77e82 In the 21st
century, interdependence and information have developed
into such an environment; boundaries between organiza-
tions and departments are more concepts than actual dif-
ferences.83 In theory, responsibilities of government
departments are clear, and responsibilities of different
departments are different. However, the Government often
requires departments to work closely with the Government
on major issues. For example, in dealing with public
emergencies, the Government sometimes has to cross
regional boundaries to gain cooperation. This is even truer
for public health.84 In the prevention and control of major
infectious diseases, collaborative public management in-
volves linking the power, function and advantages of
different departments into a common resource. The pri-
mary intention is to make public management more effi-
cient, and to improve the overall performance of the
operation of public management.85 The Chinese Govern-
ment should set health as the core goal; urge government
departments to cooperate actively; perform vertical and
horizontal cooperation; tap the potential of primary
healthcare institutions, professional PHIs and hospitals;
build strong health promotion patterns; and promote a
steady increase in the health of residents.
‘Healthy China’ has been incorporated into the overall
development plan of China's Government from 2016 to 2020.86
p u b l i c h e a l t h 1 4 2 ( 2 0 1 7 ) 7 3 e8 482
The Healthy China vision is worth looking forward to, but the
public health prong of the plan should be strengthened as
soon as possible.
Author statements
Ethical approval
Not required.
Funding
The Chinese Medical Board (G09-986, G09-946), the People's Republic of China Ministry of Science and support key projects
(2008BAI65B19), the People's Republic of China Ministry of Education, Philosophy and Social Science key projects
(08JZD0022), the People's Republic of China Ministry of Edu- cation, Humanities and Social Science Planning Fund
(08JA790099), and the Social Science Foundation of China (04
BJY 020) provided funding for this study.
Competing interests
None declared.
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- Expanding public health in China: an empirical analysis of healthcare inputs and outputs
- Introduction
- Methods
- Selection of evaluation index
- Data source
- Definitions
- Indicators
- Results
- Healthcare resource allocation during healthcare system reform from 2009 to 2014
- Healthcare human resources
- Healthcare financial resources
- Change in total health expenditure and composition from 2009 to 2014
- Components of government healthcare expenditure from 2009 to 2014
- Achievements of healthcare system reform from 2009 to 2014
- Two-week prevalence of illness and prevalence of chronic diseases
- Healthcare service utilization rate
- Out-of-pocket healthcare payments per capita
- Financial burden of health spending by household
- Discussion
- An objective fact: China's public health team is very weak
- A clear contrast: the high cost of disease treatment and the slow decline in personal cash health expenditure
- A historic choice: urgent need to build a new healthcare model
- If China does not control the incidence of disease, health resources will never meet the needs of residents in the future
- The high incidence of chronic diseases should be controlled as soon as possible
- It is critical to build a new healthcare model with health promotion at the centre
- Author statements
- Ethical approval
- Funding
- Competing interests
- References