A Comparative Study of Operational Models and Economic Sustainability in The Elderly Care Market for Disabled and Dementia Patients in Urban China Under Population Aging

Xiuyue Song

doi:10.54097/xvam3a66

Authors

Xiuyue Song

DOI:

https://doi.org/10.54097/xvam3a66

Keywords:

China; elderly care market; disabled and dementia elderly; institutional care.

Abstract

In the context of an aging population, China’s elderly care market is experiencing a period of significant transformation. The demand for care for disabled and demented elderly people continues to grow, placing higher demands on the existing elderly care model. This study focuses on the home-based and institutional elderly care models, employing the PEST (political, economic, social, and technological) analysis framework to explore the operational characteristics, economic sustainability, and major challenges faced by the home-based and institutional elderly care models. The study found that in China, home-based elderly care occupies a mainstream position due to policy support and the influence of traditional concepts, but there are some changes such as a shortage of nursing resources, insufficient community support, and a low penetration rate of smart elderly care. Institutional elderly care offers distinct advantages in terms of professional nursing and the integration of medical care with elderly care. However, its affordability and market coverage are constrained by factors such as high costs, high consumption, mismatches between bed supply and demand, and disparities in regional development. Additionally, although the tax incentives in the elderly care market help reduce the cost of institutional elderly care, it is still difficult to alleviate the pressure on its operating costs. The affordability of some high-end elderly care institutions for ordinary families is still limited.

Downloads

Download data is not yet available.

References

[1] National Health Commission Of The People's Republic Of China. 2021 report on the development of China's aging undertaking. Beijing: The State Council Of The People's Republic Of China, 2022.

[2] Dang J, Wang L, Yang X, Zhang Q. China report on the development of aging industry (2021-2022). Beijing: Social Sciences Academic Press, 2023.

[3] Yuan X. Improving the elderly care system to respond to the "9073" model. Global Times, 2024. Available from: http://views.ce.cn/view/ent/202412/20/t20241220_39241369.shtml

[4] Wang L. Witnessing a new era: ensuring elderly care and wellbeing in China. Central Commission For Discipline Inspection And National Supervisory Commission Of China, 2022-09-22. Available from: https://www.ccdi.gov.cn/toutiaon/202209/t20220922_219432.html

[5] Ma T. Progress and prospects of China's long-term care insurance pilots. Department Of Economic Forecasting, State Information Center, 2023-01-31. Available from: http://www.sic.gov.cn/sic/595/596/597/list/index_pc.html

[6] IResearch Inc. China commercial elderly care service market research report (2022). Shanghai: IResearch Consulting Group, 2022-10. Available from: https://www.iresearch.com.cn/

[7] Fang W, Phung H, Olley R, Lee P. The major domains of comprehensive assessment tools for older adults requiring home-based aged care services: a systematic review. Healthcare, 2024, 12(23): 2468.

[8] Peng Q. Research on the cultivation path of smart home-based care service mode in Internet+ vision. SHS Web Of Conferences, 2016, 25: 02012.

[9] Central Committee Of The Communist Party Of China, State Council Of The People's Republic Of China. Opinions on deepening the reform and development of elderly care services. Beijing: Xinhua News Agency, 2024-12-30.

[10] Ministry Of Finance Of The People's Republic Of China, State Taxation Administration, National Development And Reform Commission, Ministry Of Civil Affairs, Ministry Of Commerce, National Health Commission. Announcement on preferential tax and fee policies for community-based elderly care, childcare, and domestic services. 2019-06-28.

[11] Bai C, Lei X. New trends in population aging and challenges for China's sustainable development. China Economic Journal, 2020, 13(1): 3-23.

[12] Chen H, Hagedorn A, An N. The development of smart eldercare in China. The Lancet Regional Health - Western Pacific, 2023, 35: 100547.

[13] Zhao Y, Li J. Opportunities and challenges of integrating artificial intelligence in China's elderly care services. Scientific Reports, 2024, 14: 9254.

[14] Liang H. Community-based home care for the elderly under the background of population aging. Chinese Journal Of Gerontology, 2019, 39(13): 3320-3325.

[15] Thompson O, Koumanakos G, Hadjri K. The ethical and policy implications of e-health and telemedicine: an ageing-focused review. Clinical Ethics, 2012, 7(4): 147-156.