Analysis of the economic performance of municipal Children’s Hospitals in Shanghai: a study on the impacts of policy changes in healthcare service prices

Abstract

BACKGROUND: Since the Shanghai municipal government launched the latest round of medical service price reform in 2015, public hospitals have gradually abolished the prices of drugs and consumables, and increased the prices of healthcare services to properly reflect the labor value of medical workers. Under the price reform policy, we should pay more attention to the operation of children's hospitals. METHODS: Literature review: we conducted a systematic review of the economic performance of municipal children's hospitals in Shanghai and the relevant policies on healthcare service price reform. Data analysis: we use the relevant economic performance statistics of municipal children's hospitals and comprehensive hospitals in Shanghai during 2012-2018 to analyze the impacts of healthcare service price reform on children's hospitals based on time series and hospital type. Expert interview: to expand upon the data analysis, we interviewed some experts to discuss solutions for addressing the difficulties in developing municipal children's hospitals. RESULTS: Since the pricing reform, the revenue composition of children's hospitals has dramatically improved. However, the slightly insufficient potential of their business growth exacerbates their losses and hurts their economic performance. CONCLUSIONS: In the future, municipal children's hospitals should strengthen their internal management, sharpen their orientation tuning, improve their healthcare service quality, and improve their operational efficiency. Meanwhile, the government needs to provide relevant policy support and help children's hospitals in their efforts to further improve and grow. Part of the policy recommendations of this study have been included in the next round of important measures for Shanghai's medical reform and planning.