By Fineline Cube 
China’s 2,168 Class 3 public hospitals demonstrated enhanced fiscal discipline in 2023, with medical services revenue rising 0.94 pp to 29.59%. Key cost-control measures drove reductions in auxiliary medication (-0.03 pp to 0.62%) and high-value consumables (-3.22 pp to 24.86%). Essential drug utilization improved, with inpatient adoption reaching 96.30% (+0.13 pp), while volume-based procurement compliance hit 96.11% (+1.95 pp), signaling systemic efficiency gains.
Tiered Care Progress and Surgical Innovation
The tiered diagnosis system achieved a milestone, with 31.37 million (+31.4%) patients referred from Class 3 hospitals. Minimally invasive surgeries edged up 0.14 pp, and day surgeries expanded to 83.27% of hospitals (+3.70 pp). Beijing and Shanghai led in case-mix index (CMI) growth, though the national median held at 0.88. Safety metrics remained stable, with low surgical complication rates and antimicrobial use intensity at 34.02.
Operational Digitization and Talent Investment
Bed utilization reached 88.49%, while 87.99% of hospitals achieved Level 4+ EMR systems. Over 78% adopted chief accountant roles, and 51 hospitals achieved full medical-data closed loop management. Workforce upgrades included a 19.87% share of senior clinicians (+0.78 pp) and R&D funding per 100 staff hitting ¥3.03M ($418K). Patient satisfaction scores surged to 93.95 (outpatient) and 95.42 (inpatient), reflecting systemic reforms.
Challenges: Regional Gaps and Policy Refinements
Despite progress, regional disparities persist, particularly in Northwest/Southwest tech adoption. The NHC emphasized strengthening hospital governance and public welfare policies to ensure equitable care delivery nationwide.-Fineline Info & Tech