Public Regime Transformation of Welfare Provision: Puzzle and breakthrough of public healthcare sector reform in China

There is a totally public state regime in China after 1949, which means that all kinds of providers, heavy industry, light industry, social welfare service and so on, are state-owned organizations. How public sector transfers is an inevitable crossroad for social service reform in China.
Taking public health service in China as an example, this research answers how the public healthcare provision system in China turns out to be a plural structure, which is a common approach of social welfare provision in west developed industry countries. Policy documents are used to study the effect of government intervention on public hospitals, and the interaction of government and public hospitals.
Findings suggest: (1) government encourages public provider service to provide more new service items, even including comfortable and expensive hospitalization; (2) government allows public hospitals to take commercial investment, which transits public organizations into public-private joint-stock enterprises in nature. Public sector only keeps nominal public property-right. In the new century, there is a new stage of public sector reform by a reverse transformation. Government emphasis social responsibility of public sector and encourage private providers growing up to meet the non primary healthcare demand.
The devious road of public sector reform in China is an extension of China's reform of its social welfare provision system. The above findings provide evidences on the responsibility of government and public sector regulation in social welfare services. It is important reference for decision-makers in the new round of public service reform in the coming future.

Full paper download: 2.3.3 Wen Feng.pdf