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Investing in hospitals
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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)

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