Applied Research On PPP Project Financing Of Non-profit County Hospital In China

With health care system developing in depth, urban and rural health care systemmajorly consists of non-profit public hospitals and county hospitals are graduallyimproving. The construction of county-level hospitals is a short-term goal of health carereform supported by government, whereas financing difficulties emerged as theconstruction takes place extensively. The government alone cannot meet the investmentneeds of the construction funds. In addition, non-profit public hospitals are facingproblems of poor quality of service, low operational efficiency, high medical costs, andpoor accessibility of medical service, etc. To break these problems, PPP (Public-PrivatePartnership) is a path worth trying.According to PPP practice of foreign hospitals and other domestic fields, PPPmethod is proved to be advantageous easing financing tension of the government,improving service quality and efficiency, promoting the transformation of governmentfunctions, facilitating market competition and reasonable risk-sharing, advancinginfrastructure construction. Through PPP, private capital can be introduced to invest inthe field of hospitals, without transfer of property rights, giving full play to theadvantages of both the government and private capital, to share benefits and risks toachieve diversification of investment and operation entities, increase the supply ofmedical services to improve the accessibility of medical services, service quality andefficiency of hospital operations in order to meet the medical needs of the masses ofpeople and advance the cause of health care reform.In this paper, through a wide range of literature study, in-depth case analysis andcomparison, expert interviews and PEST-SWOT matrix and other methods, based on thecurrent situation of the domestic financing of hospitals, described the course ofdevelopment of the UK PPP hospitals, analyzed practices of domestic municipal utilitiesbased on cases within the field from both positive and negative aspects. The paper alsocomprehensively identified the macro environment and own conditions of privatecapital. Based on national conditions and practical non-profit hospitals at service, the paper structured a framework of hospital PPP, and analyzed on the operational process,VFM assessment, financing structure, risk management and other key contents, andprovided some appropriate proposals, guidance and reference for the operation of thefuture hospital PPP projects.