Core Viewpoint - The article contrasts the successful healthcare reform in Sanming, Fujian, with the struggles faced by a county-level hospital in Shandong, highlighting the financial challenges and the impact of healthcare policies on medical staff and institutions [3][4]. Summary by Sections Background of Sanming Healthcare Reform - The Sanming healthcare reform was initiated to address the financial difficulties in the healthcare sector, focusing on reducing medical costs through various measures such as eliminating drug markups and establishing a comprehensive medical insurance system [5][6]. - The increasing demand for healthcare services due to chronic diseases and an aging population has led to rising healthcare costs, putting pressure on medical insurance funds, particularly in rural areas [6]. Key Issues in Healthcare Financing - A county-level hospital in Shandong has faced severe financial strain, with doctors reporting unpaid performance bonuses and resorting to side jobs to make ends meet. The hospital has had to borrow nearly 300 million yuan to maintain operations [6][7]. - The core issue stems from the medical insurance payment system, where hospitals are often left to cover the shortfall between what patients pay and what insurance reimburses [6][7]. Sanming's Innovative Compensation Model - The reform in Sanming emphasizes a shift from a "treatment-centered" to a "health-centered" healthcare system, requiring a change in the compensation structure for medical staff [7][8]. - The new compensation model significantly increases the fixed salary component for healthcare workers, reducing their reliance on performance-based pay linked to patient volume [8][9]. Integration of Healthcare Services - Sanming's reform has led to the establishment of a tightly integrated healthcare system that unifies county, township, and village medical institutions, promoting shared responsibilities and benefits [9][10]. - The integration aims to streamline operations and improve healthcare delivery, ensuring that resources are allocated efficiently across different levels of care [10][11]. Financial Mechanisms Supporting Reform - The success of the Sanming reform relies on two key financial pools: funds generated from reducing drug prices and surplus funds from bundled medical insurance payments [12][13]. - The implementation of a bundled payment system allows for more efficient use of medical insurance funds, incentivizing hospitals to focus on preventive care rather than excessive treatments [13][14]. Challenges and Future Directions - Despite the successes, the article notes that many county-level hospitals still face limited financial resources, making it difficult to sustain the reforms without ongoing funding support [12][15]. - The article emphasizes the need for a comprehensive approach to healthcare financing that aligns incentives with patient care quality, moving away from a purely treatment-focused model [15].