In recent years, Chinese health care hasimproved rapidly, especially in the areas of equity andaccessibility of services, as well as the movement towarduniversal coverage. A new round of health care reform, whichwas announced in April 2009, began implementation in 2010,with reform pilots in 16 urban areas. This paper analyzes akey pillar of this ongoing reform process, public hospitalmanagement. First, the paper reviews the history of publichospital reform, discusses hospital functions andresponsibilities, and describes the structure and supply ofhealth services. Second, it describes the main policy issuesfacing public hospitals, including financing sources and thehospital market environment. Third, it examinesorganizational arrangements in public hospitals, focusing ondecision rights and governance. Fourth, the paper offers aninternational perspective and framework for assessinghospital reform. Finally, it summarizes the main policyissues and suggests next steps for policy reform. The paperdraws on recent publications, grey literature, mediareports, and interviews with key stakeholders.
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