Soft budget constraints in China: evidence from the Guangdong hospital industry.
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.
Eggleston
Karen
K
Walter H. Shorenstein Asia-Pacific Research Center, Stanford University, 616 Serra St., Encina Hall E311, Stanford, CA 94305-6055, USA. karene@stanford.edu
Shen
Yu-Chu
YC
Lu
Mingshan
M
Li
Congdong
C
Wang
Jian
J
Yang
Zhe
Z
Zhang
Jing
J
D002017:Budgets / Q000379:methods*; D002681:China; D003365:Costs and Cost Analysis; D005380:Financing, Government / Q000191:economics* / Q000458:organization & administration; D006739:Hospital Administration / Q000191:economics*; D017052:Hospital Mortality; D006801:Humans; D010561:Personnel Staffing and Scheduling; D011787:Quality of Health Care / Q000191:economics