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Zhejiang Rolls out Mechanism of Compensation for Medical and Health Organizations at Grass-root Level
2017-11-24 10:58:22

Recently, Zhejiang Provincial Department of Finance, and the Health and Family Planning Commission of Zhejiang Province have jointly printed and circulated The Implementation Opinions on Fully Advancing the Reform of the Mechanism of Compensation for Health Organizations at Grass-root Level (hereafter referred to as Implementation Opinions). The move was made to phase in a new-type compensation mechanism and remedy the distribution system by removing its nuisance of “same pay for different work done”. From 2018, Zhejiang will fully advance the reform of mechanism of compensation for health organizations at grass-root level by replacing the present compensation model with a new mechanism where special aids are integrated with paid services and financial compensation is correlated to service performance.
The launch of the new compensation mechanism aims to give full play to the roles of the market mechanism, encourage paid services, effectively motivate grass-root medical professionals and their organizations, increase the quality and efficiency of basic medical and health services, facilitating sound and sustainable development of medical and health undertaking at grass-root level. To these ends, new compensation sources are specified in the Implementation Opinions. As is defined, based on the new compensation mechanism, non-recurrent expenditure for medical capacity building and organizational growth shall be sourced mainly via special fund arrangements out of local budgets, while recurrent expenditure, say, budget for routine operation, shall be sourced mainly from providing basic medial and health services paid by government or the insured in line with relevant rules and standards. 

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