China's first HMO product introduced

China's first Health Maintenance Organization (HMO) product was introduced in Shanghai on Wednesday, aiming to provide better health care in a more efficient way.

The first HMO product, introduced by Valurise Clinic Care Network, is designed to coordinate health-care facilities to reduce unnecessary and inappropriate medical treatment, according to the company's top management.

A report by the Research Center for Insurance and Economic Development of the Chinese Academy of Social Sciences said China's health-care reform plans include privatizing the health-care industry and promoting new organization forms like HMOs. The reform will also improve the general practitioner system and tiered medical service.

HMOs also are responsible for providing basic treatments and covering the expense. Patients can enjoy timely and professional treatment without paying immediately.

With the appearance of an HMO product, it is predicted that the Chinese government will introduce the Public Private Partnership (PPP) into the health-care industry. It will integrate government resources and public medical resources to provide medical treatment that meets international standards.

HMOs will strengthen the training of general practitioners and the system of tiered medical service. Commercial health insurance also will be established alongside basic health care. It helps to fulfill people's demands on health issues while easing the pressure on public hospitals.

According to the Health and Family Planning Commission of Jing'an District, Shanghai, the district will bring in the PPP system to provide residents with better medical service.