What has driven the spatial spillover of China’s out-of-pocket payments?

Abstract

Background Even though China launched a series of measures to alleviate several financial burdens (including health insurance scheme, increased government investment, and so on), the economic burden of health expenditure has still not been alleviated. Out-of-pocket payments (OPPs) show not only a time correlation but also some degree of spatial correlation. The aims of the current study were thus to identify the spatial cluster of OPPs, to investigate the main factors affecting variation, and to explore the spatial spillover sources of China’s OPP. Methods Global and local spatial autocorrelation tests were validated to identify the spatial cluster of OPPs using the panel data of 31 provinces in China from 2005 to 2016. The Spatial Durbin Model, established in this paper, measured the spatial spillover effect of OPPs and analyzed the possible spillover sources (demand, supply, and socio-economic factors. Results OPPs were found to have a significant and positive spatial correlation. The results of the Spatial Durbin Model showed the direct and indirect effects of demand, supply, and socio- economic factors on China’s OPPs. Among the demand factors, the direct and indirect correlation (elasticity) coefficients were positive. Among the supply factors, the direct and indirect effects of the share of primary health beds on residents’ OPPs were negative. The ratio of health technicians in hospitals to those in primary health institutions on per capital OPPs had a significant indirect effect. Among the socio-economic factors, the direct effects of GDP, government health expenditure, and urbanization on OPPs were found to be positive. There were no significant indirect effects of socio-economic factors on OPPs. Conclusion This paper finds that China’s OPPs are not randomly distributed but, overall, present a positive spatial cluster, even though a series of measures have been launched to promote health equity. Socio-economic factors and those associated with demand were found to be the main influences of variation in OPPs, while demand was seen to be the driver of the positive spatial spillover of OPPs, whereby effective supply could inhibit these positive spillover effects. Electronic supplementary material The online version of this article (10.1186/s12913-019-4451-0) contains supplementary material, which is available to authorized users.

Determinants of China's Health Expenditure Growth: Based on Baumol’s Cost Disease Theory

“…It is found that spatial interaction or spatial dependence are present in health expenditure across regions in China, which is consistent with US state-level studies [40], and some studies on government health expenditure, health insurance financing or OOP spillover effect in China [41][42][43][44][45]. In combination with the spatial effect, various factors have different influence mechanisms on health expenditure growth.…”

Spatial analysis of the relationship between out-of-pocket expenditure and socioeconomic status in South Korea

“…However, this is still a contended issue. In a spatial model study by Zhang et al (2019), the number of hospital beds was found to increase the co-payment component, directly or indirectly, while Yang et al's (2021), based on the fixed effects model, showed that the effect of increasing the number of hospital beds in the district and district units decreased co-payment. Considering that the results of these preceding studies differed, follow-up studies at the individual and regional levels are needed for an accurate interpretation.…”

“…Through a spatial panel analysis of 48 states in the United States, Bose (2014) suggests that the higher the proportion of older adults in the population, the higher the per capita medical expenditure. Zhang et al (2019), using geographic information systems (GIS) analysis of a panel of data from 31 regions in China, argue that ageing of the population is, directly and indirectly, significantly related to the out-of-pocket expenditure, and Łyszczarz et al (2021), based on the association between socioeconomic factors and out-of-pocket expenditures in 16 Polish regions, found that the out-of-pocket expenditure increased by 8.5%when the proportion of the elderly in the total population increased by 1%. It is thus evident that the burden of co-payments increases when the population ages, suggesting that it is difficult to manage excessive medical expenses with the current health insurance system alone.…”