PPP: New ways of financing for elderly care industry amid supply-side reform

Abstract

Because of the supply-side reform, the implementation of the new model of urbanization, and the increasingly serious population ageing, Chinese elderly care industry will witness great prospects and become a key area supported by national policies. The elderly care industry is generally characterized by large input, long payback period, low profit margin and strong nature of public welfare. The traditional elderly care system in China that is mainly undertaken by the government and supplemented by private forces is a heavy fiscal burden on the government, and it failed to create a situation that encourages private investors to actively engage in developing the elderly care industry. Based on that, this article, centered on the unique property right structure and operation model of PPP (public private partnership), objectively analyzes why the PPP model is suitable for supporting China's elderly care industry development, and introduces the background, status quo, prospects and positive effects of this approach as well as the challenges it faces. It also offers innovative measures and suggestions on howto effectively apply the PPP model, in the endeavor to exploreways of supporting China's elderly care industry development through this approach.