Table 2.

Revenue sources for community health stations before and after the 2008 reform in Weifang, compared to City Y

Revenue sources	Weifang, 2007 (pre-reform)		Weifang, 2009 (post-reform)		City Y, 2009 (comparison city)
	Public	Private	Public	Private	Public	Private
Subsidies for preventive services*1	Yes, according to the preventive services provided.	No.	Yes, decided by number of served residents and evaluation based on the contract.	Yes, same as for public CHS.	Yes, decided by number of served residents and evaluation based on the contract.	Yes, same as for public CHS.
Subsidies for staff training	No.	No.	Yes, government provides some free training programs.	Yes, same as for public CHS.	Yes.	No.
Subsidies for personnel	Yes, per capita budget and payment for retirees’ social insurance.	No.	Yes, same as before.	No.	Yes.	No.
Subsidies for rental or purchase of land and clinic space	Yes, but amount differs according to CHS scale and scope.	No.	Yes, same as before.	No.	Yes.	No.
Subsidies for equipment	Yes.	No.	Yes, one time 60,000RMB investment.	Yes, one time 60,000RMB investment. Refund to government if CHS withdraws from the CHS network.	Yes.	No.
Subsidies for EML drugs*2	N/A (EML drug policy not yet launched.)	N/A (EML drug policy not yet launched.)	Yes, sell at acquisition price to patient; government pays the CHS the original 15% mark up for dispensing EML drugs.	Yes, same as for public CHS	N/A (EML drug policy not yet launched.)	N/A (EML drug policy not yet launched.)
Fee for service from out-of-pocket payments	Patients charged according to government-set fixed or “guide” prices.	CHS has autonomy in setting prices.	Same as before.	CHS retains price-setting autonomy, but cannot exceed government “guide” prices.	Patients charged according to government-set fixed or “guide” prices.	CHS has autonomy in setting prices.
Fee for service paid by urban employee insurance *4	Covered, but no difference from hospital outpatient care in terms of patient co-payment.	Not covered by the social insurance network.	Covered, and at a more generous rate than hospitals. Patient co-payments are lower than for hospital outpatient visits.	Yes, same as for public CHS.	Covered, but no difference from hospital outpatient care in terms of patient co-payment.	Not covered by the social insurance network.
Fee for service paid by urban residents insurance *4	N/A (Urban residents insurance not yet launched.)	N/A (Urban residents insurance not yet launched.)	Covered, and at a more generous rate than hospitals. Patient co-payments are lower than for hospital outpatient visits.	Yes, same as for public CHS	Covered, but no difference from hospital outpatient care in terms of patient co-payment.	Not covered by the social insurance network.

*1. The subsidies are decided by (a) the evaluation score as described in Table 1; and (b) the number of served residents. In 2008 and 2009, the per capita budget for public health services was 10RMB. CHS with a score above 80 got 100% of the budget; CHS scoring between 70 and 80 got 90% of the budget; CHS scoring between 60 and 70 got 80% of the budget; CHS scoring between 50 and 60 got 60% of the budget; and CHS scoring under 50 got no subsidies.

*2. The 70 drugs listed on the Essential Medicine List must be sold to patients at the acquisition price; if prescriptions from the EML represent more than 30% of all prescriptions, the CHS receives a subsidy from the government equivalent to 15% of the drug price.

*3. The chronic diseases for which the CHS can be reimbursed by health insurance for associated outpatient expenses include stroke, diabetes, chronic viral hepatitis, and autoimmune hepatitis.

*4. For the service items covered by insurance, CHS are reimbursed by insurers and patient copayments.