Carey School of Business
Effects of China’s New Rural Cooperative Medical Scheme on Patients’ Chronic Disease Management
The objective of this project is to evaluate the impact of China’s New Rural Cooperative Medical Scheme (NRCMS) on chronic disease management in the rural community. The project aims to understand the patients’ underlying tradeoff behind the inefficiencies in utilization and explore how these inefficiencies can be reduced through the medical/insurance policy design. The project focuses on patients with certain chronic diseases such as diabetes and grade-3 hypertension in different counties from Jiangsu Province. We will build a theory-based empirical model of how consumers make the health care consumption decisions inter-temporally. We propose a three-phase program of research. The first phase focuses on understanding and evaluating the institutional characteristics of NRCMS. The second phase develops a set of econometric evaluation of consumer chronic disease management decision making processes. Statistical tests, discrete choice modeling and nonlinear dynamic econometric methods will be performed. The third phase will draw on the results of the experimental studies to build formal analytical models to explore the equilibrium implications of alternative physician incentive schemes and insurance designs options. The study will provide some insights on the impact of outpatient reimbursement policy on chronic diseases, and contribute to better implementation of the reimbursement policy of NRCMS and further promote the wellbeing of patients with chronic diseases.