What happens when hospitals are directly funded by the government?

category:Finance
 What happens when hospitals are directly funded by the government?


By contrast, Singapores public hospitals receive 92% of the countrys investment, and doctors there can focus on quality and technology without worrying about operations.

However, a similar pattern exists in China, which takes place in Zichang County, a small county town in Shaanxi Province. So its also called the child-length model.

There are two main characteristics of the child-head model: firstly, the government fully undertakes the basic operation of medical institutions, public health services and hospital development funds; secondly, the management system and operation mechanism of public hospitals are comprehensively reformed.

On the operation of hospitals, the government guarantees the salaries of medical staff in full with its budget, which is 33% higher than that of local civil servants and public institutions. Hospitals can concentrate on treating patients. Putting hospitals into the market seems to attract patients through competition mechanism, but the disadvantage is that the market will destroy the non-profit connotation of hospitals. The governments financial support for hospitals, although it will exclude the competition in the market, can make hospitals look down on profits. At present, the child-head model can not be popularized in the whole country. However, with the attention paid to the problem of expensive and difficult to see a doctor, more and more provinces and municipalities have intervened in the medical reform recently. Source: Netease Financial Responsibility Editor: Han Yukun_NBJ11142

On the operation of hospitals, the government guarantees the salaries of medical staff in full with its budget, which is 33% higher than that of local civil servants and public institutions. Hospitals can concentrate on treating patients.

Putting hospitals into the market seems to attract patients through competition mechanism, but the disadvantage is that the market will destroy the non-profit connotation of hospitals.

The governments financial support for hospitals, although it will exclude the competition in the market, can make hospitals look down on profits.