China’s Public Hospitals Report Mixed Fortunes as Financial Pressures Mount
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According to incomplete statistics compiled by Caixin, 85 out of 144 hospitals, or 59%, saw revenue growth last year, while the remaining 59 experienced a year-on-year decline in income. Photo: VCG
Public hospitals across several major Chinese provinces and municipalities posted divergent financial results in 2024, with a narrow majority reporting revenue growth while a substantial portion faced declining income.
According to 2024 financial statements released by health authorities in seven regions including Beijing, Shanghai and Tianjin, 85 out of 144 major public hospitals saw their revenue increase last year, a Caixin analysis of the data found. The remaining 59 hospitals, or 41%, reported a drop in income.
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- In 2024, 85 of 144 major public hospitals in seven Chinese regions reported revenue growth; 59 (41%) saw declines.
- Hospitals in Beijing and Shanghai performed better, while those in Hebei and Tianjin faced significant revenue drops, mainly due to patient loss and subsidy cuts.
- Nationwide medical insurance reforms and cost controls reduced drug prices and service fees, cutting hospital revenues across multiple regions.
AI generated, for reference only
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- Capital Medical University-affiliated Beijing Anzhen Hospital
- Capital Medical University-affiliated Beijing Anzhen Hospital, located in Beijing, led city-run hospitals in revenue growth. In 2024, it reported revenue of 10.2 billion yuan ($1.4 billion). The hospital's performance contributed to the trend of hospitals in top-tier cities generally faring better financially.
- Shanghai Jiao Tong University School of Medicine's Ruijin Hospital
- Shanghai Jiao Tong University School of Medicine's Ruijin Hospital saw significant financial success in 2024. It topped the list of municipal hospitals in Shanghai with a revenue of 14.4 billion yuan. This stellar performance contrasts with a general trend of mixed financial results among Chinese public hospitals, highlighting its strong position within a challenging healthcare landscape.
- The First Affiliated Hospital of Wannan Medical College
- The First Affiliated Hospital of Wannan Medical College in Anhui experienced a decrease in both business volume and revenue in 2024. This hospital is cited as an example of public hospitals facing declining income, primarily due to the loss of patients to competitors.
- The Second Affiliated Hospital of Hebei North University
- The Second Affiliated Hospital of Hebei North University experienced a decline in both business volume and revenue in 2024. This hospital is located in Hebei province, where 17 of 25 provincial hospitals generally struggled with decreasing revenue.
- Tianjin's Haihe Hospital
- Tianjin's Haihe Hospital experienced a significant 42% revenue decrease in 2024. This substantial drop was primarily attributed to a 300 million yuan cut in government subsidies, which previously covered its operational losses. The hospital is part of a broader trend in Tianjin, where 19 out of 21 city-run hospitals saw their income decline.
- The First Affiliated Hospital of Gannan Medical University
- The First Affiliated Hospital of Gannan Medical University experienced a decrease in government funding of 50.5 million yuan in 2024. This contributed to the financial struggles faced by some public hospitals in China, amid broader challenges like patient loss and medical insurance reforms.
- Tianjin People's Hospital
- In 2024, Tianjin People's Hospital experienced a revenue decrease of over 90 million yuan. This decline was attributed to reduced fees for tests and the expansion of centralized procurement policies, even though patient volume remained stable. This highlights the impact of medical insurance reforms on hospital finances.
- The Affiliated Hospital of Chengde Medical University
- The Affiliated Hospital of Chengde Medical University experienced a 10.7% decline in revenue in 2024. This was primarily attributed to the impact of national medical insurance reforms, including policies like centralized procurement for drugs and consumables, and adjustments to medical service fees. These reforms directly reduced hospital revenues, contributing to the financial challenges faced by the hospital.
- Jinggangshan University Affiliated Hospital
- Jinggangshan University Affiliated Hospital experienced a 30% drop in revenue in 2024. This decline was partly attributed to delayed 2024 settlement payments from the local insurance department, indicating cash flow problems due to overdue reimbursements.
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