Soft budget constraints in China: evidence from the Guangdong hospital industry

Int J Health Care Finance Econ. 2009 Jun;9(2):233-42. doi: 10.1007/s10754-009-9067-1. Epub 2009 Apr 28.

Abstract

Using data from 276 general acute hospitals in the Pearl River Delta region of Guangdong Province from 2002 and 2004, we construct a preliminary metric of budget constraint softness. We find that, controlling for hospital size, ownership, and other factors, a Chinese hospital's probability of receiving government financial support is inversely associated with the hospital's previous net revenue, an association consistent with soft budget constraints.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Budgets / methods*
  • China
  • Costs and Cost Analysis
  • Financing, Government / economics*
  • Financing, Government / organization & administration
  • Hospital Administration / economics*
  • Hospital Mortality
  • Humans
  • Personnel Staffing and Scheduling
  • Quality of Health Care / economics