Research Article

Does Public Hospitals Crowd Out Private Hospitals? Evidence from China Province Level Data

Author: Biao Xu

1. Abstract 1.1. Background: China has promulgated a series of policies to promote the development of private hospitals since 2009. However, private hospitals developed only in a growing number but not growing in market share of medical services. This paper aims to investigate whether public hospitals had crowded private hospitals out of healthcare market. 1.2. Methods: Using various datasets, this study employed an instrumental variable technique to examine the existence of crowd-out effects in hospital market. 1.3. Results: xx 1.4. Conclusion: Chinese public hospitals crowded private hospitals out of inpatient market, and the crowding out effect persisted in all areas with different level of economic development.