Authorities in the Beilun District in Ningbo have established an innovative rural healthcare service mechanism, seeking to expand benefits to farmers.
Based on in-depth research on past healthcare experiences and a study on pilot schemes in other regions, the new rural co-operative healthcare security mechanism emerged in Beilun at the end of 2003.
It included hospital bill insurance, outpatient clinic service advantages, aids for serious illness, physical examinations, and medical tours.
Distinct from traditional medical service modes where governments take care of the operation of medical facilities, the new mode has capable commercial insurance firms taking charge of the rural medical service through tendering and bidding.
Capitalizing on human resources, sales networks, managerial expertise, and a standardized reporting system from the insurance firms, the government run healthcare service mechanism is cost effective.
By taking out policies, the insured farmers are entitled to compensation when staying in hospital, and enjoy a 10 per cent discount on their clinic service bills.
Furthermore, the insurance companies also arrange for a free routine physical examination every three years.
This has significantly helped the farmers, who tend to be exposed to poverty because of mounting hospital bills they cannot afford.
Therefore the new healthcare mechanism has received wide support from local rural residents.
The insurance participation rate has been growing over the past few years, from 92.9 per cent in 2004 to 93.1 per cent in 2005.
In addition to contributions from commercial insurance firms, local authorities also play an important role in the smooth operation of the mechanism.
The district government established an annual special fund of 3 million yuan (US$375,000), aiming to provide medical aid to poor farmers suffering from serious illness.
The final result of the fund allocation is open to the public to improve transparency and guarantee fairness.
Meanwhile, traffic inconvenience is a drag on rural residents' access to medical services.
To address this issue, the government purchased a 1.6-million-yuan (US$200,000) medical vehicle.
With the well-equipped vehicle, medical professionals have made 73 regular and irregular working tours around remote rural areas in the district and provided medical services to more than 10,000 people.
Private investment
The Central Hospital in Ningbo Economic and Technological Development Zone used to be wholly invested by the zone's administrative committee in 2000.
Despite an annual fiscal input of more than 6 million yuan (US$750,000) from the administrative committee, the hospital made little profit.
After some market research, the authorities advanced the restructuring process. At the end of 2003, the hospital became a non-government medical institute.
In the past two years, new owners of the Central Hospital have invested at least 20 million yuan (US$2.5 million) in purchasing leading-edge medical facilities and 100 million yuan (US$12.5 million) in expanding hospital buildings for inpatients.
The equity transfer of the Central Hospital triggered an influx of private investments in the medical service market.
At present, 30 privately invested medical institutes are in operation in the district, with a combined investment value of more than 200 million yuan (US$25 million).
The active involvement of private investors on the one hand helps relieve the financial tension of the local government, and on the other hand promotes the healthy growth of the medical service industry through competition.
(China Daily 06/08/2006 page16)
