Why China is targeting the corruption tumour at the heart of its ailing health system

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Why China is targeting the corruption tumour at the heart of its ailing health system
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Surgeon James Wu said he was “shocked but happy” when colleagues told him that the head of their hospital in the southern Chinese province of Guangdong had surrendered to corruption investigators. Wu’s boss turned himself in in late July, becoming one of more than 160 hospital chiefs around

Observers say the crackdown is unlikely to end any time soon and could usher in further changes to the health system.

That forced hospitals to make up the difference with equipment or service fees – an area ripe for graft. The resulting tension in the system has fostered distrust between patients and medical workers, giving rise to a phenomenon known as yinao, or hospital violence. At the same time, the proportion of people aged 65 and over climbed from 10.8 per cent to 14.9 per cent.

In the decade since those lists were issued, authorities have passed laws and amendments to try to stamp out corruption and rein in medical costs. These include bringing public hospital managers and businesses under “national supervision” and banning companies that engage in corruption from the industry.

After that, thousands of investigators from national anti-corruption agencies and healthcare authorities stormed the country’s hospitals, public health insurance administrations and medical suppliers. Beijing chose a massive anti-corruption campaign as the “breakthrough point” of its healthcare reform because graft is central to pushing up prices and inflating claims on the national insurance system, according to Xie Maosong, a senior fellow of the Taihe Institute and a senior researcher at the National Strategy Institute at Tsinghua University.

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