Business Case Studies, Govenrment and Business Environment Case Study, China’s Health Care System,The Price for Economic Progress

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Govenrment and Business Environment Case Study

Case Title:

China’s Health Care System: The Price for Economic Progress

Publication Year : 2004

Authors: Daksha Bhat under the guidance of Dr. Nagendra V. Chowdary

Industry: Health Care


Case Code: GBE0031

Teaching Note: Not Available

Structured Assignment: Not Available

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The Chinese population achieved good health and longevity under the Chinese Communist Party's authoritarian rule. After the opening up of China's economy in 1978, GDP (gross domestic product) increased, but the health sector declined instead of keeping pace with economic growth. Privatisation of the health sector led to variances in the availability of healthcare facilities. The social welfare system was unsatisfactory, and people did not trust the government enough to participate in voluntarily financed 'Co-operative Medical Systems' (CMS). In the absence of centrally planned financing, appropriate government control and accountability, public healthcare facilities have been mismanaged.

Pedagogical Objectives:

  • To discuss the appropriate degree of government finance, and control, in the provision of basic healthcare and the need for a satisfactory social welfare system, which people can trust
  • To discuss the problem that the communist government was facing, which has left the health of its 1.2 billion people to market forces, and the lack of international concern about the situation until SARS was 'exported' to other countries
  • To discuss whether GDP growth is appropriate as a sole measure of a country's progress.

Keywords : Health economics, Welfare State, Economic growth, Privatisation, Social Security,Government and Business Environment Case Study, Gini coefficient, Public accountability, Co-operative financing, Health care,Business Environment Case Study

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