Don't get sick in China

Yesterday's Wall Street Journal brought up another major problem for China: its health care system. As China started to adopt a more capitalist approach, it ordered hospitals to become profit-making entities. As a result, hospitals try to maximize their revenue from each patient. Studies by the World Bank as well as Chinese organizations have concluded that hospital doctors typically overprescribe drugs and diagnostic procedures. In the US about 15% of our total health care spending goes to drugs; in China the percent is 50. The World Bank estimates that as much as 37% of China's health dollars are wasted on unnecessary drug prescriptions.

But worse than the revenue-maximization policy is the Chinese payment policy: before you are treated, you must pay the bill even in cases of emergency. The article illustrates the situation by describing the efforts of a family to save the life of their seven-year-old son who has leukemia. The family earns $350 annually, the estimated cost of a six-month treatment is $18,500. And, the fees for each part of the treatment must be paid in advance. Thus far, the family is $4,000 in debt, much of it borrowed from their fellow villagers, who really can't afford it. So, an entire village is at risk of economic failure because of the illness of one small child. And, because of the policy the family takes the boy out of the isolation ward and the hospital after each treatment, thus increasing the risk of infection.

Fortunately, some in the Chinese media have started reporting on this problem. The government has begun to address the problem but estimates are that it will take 20 years.

It's clear that if China intends to be a major power with some sort of humane treatment of its citizens, it must address its health care and pollution problems now.