Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the government

IntroductionWith the intensification of population aging and the diversification of medical demands, China's healthcare system faces dual challenges of ensuring public welfare and improving efficiency. To enhance China's medical service capabilities, upgrade medical technologies, and expan...

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Main Authors: Liu Xiao, Wang Qingjin, Gao Hao, Jiang Shan
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-06-01
Series:Frontiers in Public Health
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Online Access:https://www.frontiersin.org/articles/10.3389/fpubh.2025.1594684/full
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author Liu Xiao
Wang Qingjin
Gao Hao
Jiang Shan
author_facet Liu Xiao
Wang Qingjin
Gao Hao
Jiang Shan
author_sort Liu Xiao
collection DOAJ
description IntroductionWith the intensification of population aging and the diversification of medical demands, China's healthcare system faces dual challenges of ensuring public welfare and improving efficiency. To enhance China's medical service capabilities, upgrade medical technologies, and expand diversified service supply patterns, the Chinese government has permitted the establishment of wholly foreign-owned hospitals.MethodsThis study constructs a tripartite evolutionary game model involving wholly foreign-owned hospitals, public hospitals, and the government, combined with system dynamics simulation, to explore policy optimization pathways for high-quality development and sustained opening-up in China's healthcare industry.Results and discussionThe entry decisions of wholly foreign-owned hospitals are driven by economic returns and policy support, where government subsidies can accelerate their entry into the Chinese market but exhibit diminishing marginal utility. The transformation of public hospitals is primarily influenced by government financial subsidies, with subsidy intensity exhibiting a positive correlation with the degree of transformation; however, high subsidies are unsustainable. Government regulatory strategies are constrained by both social losses and regulatory costs, which require balancing short-term interventions with long-term sustainability. Based on these findings, this study argues that China's healthcare industry should continuously improve the regulations on foreign investment access, allow social funds to enter the healthcare industry, establish comprehensive urban medical alliances, and refine the regulatory measures, among others.
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spelling doaj-art-0852d7438ecb4a95a1668f3f9db4eac32025-08-20T02:31:15ZengFrontiers Media S.A.Frontiers in Public Health2296-25652025-06-011310.3389/fpubh.2025.15946841594684Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the governmentLiu Xiao0Wang Qingjin1Gao Hao2Jiang Shan3Business College, Qingdao University, Qingdao, Shandong, ChinaBusiness College, Qingdao University, Qingdao, Shandong, ChinaBusiness College, Qingdao University, Qingdao, Shandong, ChinaSchool of Foreign Languages, Qingdao University, Qingdao, Shandong, ChinaIntroductionWith the intensification of population aging and the diversification of medical demands, China's healthcare system faces dual challenges of ensuring public welfare and improving efficiency. To enhance China's medical service capabilities, upgrade medical technologies, and expand diversified service supply patterns, the Chinese government has permitted the establishment of wholly foreign-owned hospitals.MethodsThis study constructs a tripartite evolutionary game model involving wholly foreign-owned hospitals, public hospitals, and the government, combined with system dynamics simulation, to explore policy optimization pathways for high-quality development and sustained opening-up in China's healthcare industry.Results and discussionThe entry decisions of wholly foreign-owned hospitals are driven by economic returns and policy support, where government subsidies can accelerate their entry into the Chinese market but exhibit diminishing marginal utility. The transformation of public hospitals is primarily influenced by government financial subsidies, with subsidy intensity exhibiting a positive correlation with the degree of transformation; however, high subsidies are unsustainable. Government regulatory strategies are constrained by both social losses and regulatory costs, which require balancing short-term interventions with long-term sustainability. Based on these findings, this study argues that China's healthcare industry should continuously improve the regulations on foreign investment access, allow social funds to enter the healthcare industry, establish comprehensive urban medical alliances, and refine the regulatory measures, among others.https://www.frontiersin.org/articles/10.3389/fpubh.2025.1594684/fullpolicy optimizationChina's healthcare sectortripartite evolutionary gamewholly foreign-owned hospitalspublic hospitalsgovernment
spellingShingle Liu Xiao
Wang Qingjin
Gao Hao
Jiang Shan
Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the government
Frontiers in Public Health
policy optimization
China's healthcare sector
tripartite evolutionary game
wholly foreign-owned hospitals
public hospitals
government
title Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the government
title_full Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the government
title_fullStr Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the government
title_full_unstemmed Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the government
title_short Policy optimization for high-quality development and openness of China's healthcare sector: a tripartite evolutionary game based on wholly foreign-owned hospitals, public hospitals and the government
title_sort policy optimization for high quality development and openness of china s healthcare sector a tripartite evolutionary game based on wholly foreign owned hospitals public hospitals and the government
topic policy optimization
China's healthcare sector
tripartite evolutionary game
wholly foreign-owned hospitals
public hospitals
government
url https://www.frontiersin.org/articles/10.3389/fpubh.2025.1594684/full
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