China's public hospitals are facing a severe financial crisis, with many battling significant debt and declining revenues. This issue gained attention in autumn 2024 when a public hospital in Guangdong province declared bankruptcy. This event signals broader financial difficulties impacting public hospitals across China.
The crisis stems from infrastructure expansion and government reforms aimed at reducing healthcare costs. These reforms have strained hospitals financially, leading to salary cuts and worker protests. Many hospitals face challenges from demographic changes, such as an aging population and patient outflow to larger hospitals in urban areas.
In 2025, the situation is expected to worsen without intervention. The combined effects of debt, reform-driven income loss, and demographic shifts point to a complex and enduring crisis. Urgent attention is needed to address both immediate financial hardships and long-term structural reforms.