2023-09-14 15:08:52
China Cracks Down on Corruption in Health Care Sector to Reduce Costs and Boost Economy
China has launched an extensive anti-corruption campaign in its health care sector in an effort to tackle rising medical costs and revive the country’s sluggish economy. According to the American Wall Street Journal, Communist Party members have conducted raids on hospitals and medical institutions across China, resulting in the arrest of over 190 current and former hospital heads, directors, and deputy directors this year alone.
While the Chinese Communist Party has previously targeted corruption in the health care sector, this year’s campaign has been particularly robust. It mirrors recent crackdowns on internet giants and the after-school tutoring industry, which have disrupted significant portions of the country’s economy.
The crackdown on corruption includes the arrest of a retired regional party leader who oversaw health care reforms from 2010 to 2015. The leader was charged with “serious violations of discipline and law,” a term commonly used as a euphemism for corruption.
Despite a slowdown in economic growth, Chinese President Xi Jinping has been striving to prioritize the economy. China faces complex economic challenges, including turmoil in the real estate sector, high local government debt, and weak consumption. To counter these problems, President Xi has injected billions of dollars into supporting spending, halting deflation, and bolstering the weak currency.
This anti-corruption campaign is occurring at a time when China’s economy is experiencing a new era of slow growth, and its leadership is seeking to encourage greater expenditure among its citizens. By fighting corruption in the health care sector, the government aims to reduce health care bills for Chinese families, thus driving them to save rather than consume.
In addition to curbing medical costs, the campaign aligns with President Xi’s commitment to achieving common prosperity in China. Beijing has long prioritized tackling the rising costs of housing, education, and health care, which are collectively known as the “three great mountains” due to their significant impact on families’ living expenses. Addressing these issues is essential to combating wealth inequality, promoting consumption and economic growth, and countering declining birth rates.
While over 95 percent of China’s population has health insurance, it only offers basic coverage. In 2020, approximately one-third of China’s healthcare spending came directly from patients’ out-of-pocket funds, which is three times the amount paid by patients in the United States. Chinese leaders acknowledge that when people lack access to affordable health care, it poses a threat to social stability.
Experts studying China’s healthcare industry highlight the sector’s widespread corruption, primarily stemming from inadequate oversight and financial pressure on underfunded hospitals. Doctors and administrators often accept bribes to supplement their income and generate additional revenue. Patients also make informal payments known as “red envelopes” to medical professionals in exchange for faster or higher-quality treatment. Moreover, drug sales with high profit margins have fueled corruption, as pharmaceutical companies frequently bribe doctors to encourage the prescription of their products.
In conclusion, China’s anti-corruption campaign in the health care sector serves a dual purpose of reducing medical costs and supporting the economy. By combatting corruption and improving access to affordable health care, the government aims to enhance social stability, promote consumption, and stimulate economic growth. However, the success of these efforts depends on effective oversight, increased funding for hospitals, and comprehensive reforms within the health care industry.]
#Health #Care #portal.. #Chinese #efforts #revive #faltering #economy