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China has made significant strides in streamlining cross-regional medical services by upgrading its healthcare payment system, easing financial burdens for both patients and medical institutions.
According to the National Healthcare Security Administration (NHSA), 77 percent of the country’s coordinated regions have now achieved instant settlement of basic medical insurance funds for medical institutions.
In China’s healthcare system, a coordinated region refers to a designated administrative area – often at the provincial, municipal, or county level –that participates in a unified medical insurance coordination mechanism. These regions are part of a national effort to integrate healthcare resources, standardize policies, and streamline cross-regional medical services and insurance reimbursements.
This reform has already disbursed 300.1 billion yuan ($41.7 billion) in medical insurance funds, alleviating the strain of advance payments previously borne by healthcare providers.
In January 2025, the NHSA launched a major overhaul to achieve instant settlement of basic medical insurance funds in 80 percent of coordinated regions by the end of this year. As of May 6, 300 coordinated regions, accounting for 77 percent of the total, have activated the instant settlement mechanism, covering 361,800 designated medical institutions.
To optimize fund management, these regions have adopted flexible approaches based on weekly or monthly time frames, accelerating fund distribution while stabilizing cash flow for healthcare providers. This strategy not only ensures predictable funding for medical facilities but also reduces financial pressure on insured patients, guaranteeing timely access to care.
