Private Rest Home's Development Under Social Welfare Socialization

China has carried out social welfare socialization since 1990s. On the one hand, state rest homes and collective rest homes have been opened to the public. One the other hand, private rest homes founded and developed rapidly. But the private rest homes are not so low risk and high efficiency as expected. Many of them are in debt. It is meaningful to analyze the problems of management in the private rest homes and make some suggestions.This paper deals with the policy space of private rest homes. There are four main parts in this paper. Firstly, review the existing studies on social welfare socialization both in China and abroad. Secondly, discuss the social welfare socialization situation and problems existed in rest homes of China. Thirdly, select two private rest homes in Zhejiang as cases study to analyze the difficulties in front of them. Finally, make some suggestions for the sustainable development of private rest homes.Study shows that the policy imperfect and lack of money are the most difficult problems in private rest homes' development. The paper suggests that government should improve the policy space for private rest homes and provide more sustentation fund for them, and make the private rest homes as a part of social welfare for the aged.