The healthcare system of HK runs on a dual-track basis encompassing the public and the private sectors. 9 Public healthcare is the cornerstone of our healthcare system, acting as the safety net for the whole community. Today, the public hospitals provide approximately 90% hospital medical service and 29% outpatient medical service throughout HK.
That said, we argue that the distortions in the dual-track system may cause a vicious circle that leads to more policy distortions, lowers economic growth, and lead to more financial risks in the long run. The recent firm data has shown signs of deteriorating allocation efficiency.
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The dual track system happened in the early 1990’s because you had an socialist system in which factories were told what to produce by the state, while you wanted to add on a market based system. The big difference was prices. In a market syst.
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The dual-track price system is the intermediate price system from the state control price system to the free market price system. In China prior to 1978, most prices were set by the government.