Contemporary China Research Medical Services Public-private Partnership

This paper of Public-Private Partnerships in health aims to provide an innovative way to encourage and guide social capital to sponsor health care undertakings for the health care reforms. Many governments are confronted by the challenges in healthcare finance, management, and provision. In2009, the Chinese government kicked off a new round of health care reforms. One of principles of the reforms is that we should emphatically give full play to the role of market forces, call on social participation, promote the formation of orderly competition mechanism, upgrade operational efficiency, service level and quality of the health care system, and satisfy the people’s multi-layer and diversified demands for health care services. Combining government’s leading role with the role of market forces is the core strategies for the reform. PPP is one tool available to decision makers in reforming infrastructure or service delivery, and initiative to try and create a greater reliance on the private sector to deliver public service.PPP, namely each kind of agreement and long-term cooperation relations established in the process of public sector working with the private sector to provide public good and the service. Experience shows that PPP contracts can attract private capital investment (as a supplement for public financial), transfer risk, increase efficiency, make value for money, and reform health sectors through a reallocation of roles, incentive, and regulatory. Over the past two decades, privatization reforms in China have generated remarkable growth. During this period, the Chinese government has been promoting health service reforms to meet the healthcare needs of diverse populations associated with shift to the market-driven economy. Recent years some cases of PPP in health in China have come to the stage, such as contracting out. concession contracts and privatization. However, there were little of the researches of reform by PPP perspective.In order to encourage and guide social capital to sponsor health care undertakings, a new model called Gaizhi Chongzhu (joint-stock reform of a public hospital) has been used in Kunming in2008. This government-enterprise cooperation model is worth studying for PPPs in health in China. Two problems that hindered the implementation of PPP in health in China were the lack of experience and legal support at present time. Therefore, this paper introduces and defines PPPs and their context within health in various countries firstly, and offers implications for China. Secondly, it provides an overview of the topic and key types of PPPs in practice in China (especially cases in Kunming), the associated motivation and benefits, key success factors and problems. Finally, this article describes a PPP framework and policy recommendations associates with designing and preparing a PPP project that will attract bidders for policy maker.