Chinese Healthcare System

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Abstract
In this article, I introduce the Chinese Healthcare System. From establishment of the People's Republic of China till now, the Chinese healthcare have a lot of changes and revolutions. Due to the special social and economic structure, Chinese healthcare system is different from other countries healthcare system. This article will explain how dose Chinese healthcare system work? What problems dose it have? How can we manage those problems?

Background
After the establishment of the People’s Republic of China in 1949, the country was recovering from the chaos of long conflicts both internally and with Japan. As a result, Chinese health conditions had declined, with health indicators at the lowest level compared with other countries at a comparable level of development (World Bank, 2004). In this period, communist party who have the whip hand support the model of the 20th century communism ideology, and trust people should to be represented by the government, should have all production together: without the private department. Formation of the Chinese healthcare system.

Therefore, since 1949, the Chinese government has gradually established a free medical care, labor insurance and cooperative medical care system as the main content of the health care system, and initially formed a socialist country's health care system. The government owned, funded, and ran all health care facilities, including large hospitals in urban areas and small township clinics in the countryside. All providers were employees of the state. Meanwhile, private health practice and private ownership of health facilities disappeared along with other private business. Development of Chinese healthcare system

In 1950, at the First National Health Work Conference, the central government announced four fundamental principles for medical and health work: service for workers, peasants, and soldiers; prevention first; combining Chinese medicine and Western medicine; and integrating “mass campaign” into health care work as a core mechanism (Project Team of the Development Research Center of the State Council of China, 2005). Although the achievement in improving health and expanding health care infrastructure during the planned-economy period is certainly indisputable, the merits of this health system may have been overestimated. First, as noted, health in China was extremely poor when the country gained independence. It might have been easy to improve health starting from this low point, since several urgent needs could have been easily addressed. Second, health care is not the only factor that influences health. Between approximately 1950 and 1990, nutrition, hygiene, education, living standards, and even culture changed dramatically in China (Hsiao,1995). These changes could have greatly affected improvements in health. Since the early 1980s, China has experienced fundamental economic reform and societal transformation. In this context, the health care system—and many other public services— have undergone changes that are often characterized as privatization. As early as 1980, the Chinese Ministry of Health reviewed the situation and recommended legalizing private medical practice under strict regulation. In 1985 the State Council, the Chinese equivalent of the U.S. cabinet, directed that private medical practice be encouraged (Lim, Yang, Zhang, Feng, et al., 2004). Urban healthcare and rural healthcare

Due to the unique dual social and economic structure, health care was delivered very differently in China’s urban and rural areas. In the cities, all revenues and expenditures were planned and controlled by the government, health services were directly organized and almost completely funded by the government, and urban residents only paid a small registration fee to receive treatment. In the rural areas, the commune was the keystone of all aspects of life. Communes, the critical institutes that represented the peasants, owned the land and...
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