Allowing private investment in public hospitals will not
compromise the healthcare services though prudence is needed to
carry it out, says an article in China Economic Times. The
following is an excerpt:
The Qingdao government in east China's Shandong Province is
reportedly planning to accept private investment to finance
State-run hospitals in the city. The plan sparked heated discussion
in a recent forum on public healthcare held in Beijing because
private investment in public hospitals is not allowed at
present.
The feasibility of the plan depends on two issues: whether the
State hospitals need the money from private investors and whether
these hospitals would be able to offer better services.
According to experts, State hospitals are not getting adequate
capital from the government to cover their expenditure, they are
under considerable pressure to make ends meet.
Should the government increase its funding of hospitals? The
answer is no. Many hospitals supported by government in other
countries still cannot satisfy public needs. The common problem is
long waiting periods and inefficient services.
Zhou Qiren, a professor with Peking University, expressed his
confidence in medical services provided by State hospitals should
they receive private investment.
Zhou believed businesses in the market economy must strike a
balance between their pursuit of profits and the needs of
customers. Private investors are not likely to risk their money if
State hospitals provide poor services.
His opinion does hold water. Investors in public hospitals
should take care of the financial and managerial aspects, and leave
the medical facilities to professionals.
Financing public hospitals with private money should be carried
out with prudence, and Qingdao could be a good place to start.
(China Daily November 1, 2007)