In some countries around the world, loans for medical expenses from private financial institutions are accepted by consumers in the same way as loans for cars and housing. In China, some financial companies are beginning to offer this service, but in a way that so far has received a cold reception.
According to a China Central Television report, only five medical loans have been granted by Shanghai Pudong Development Bank Lujiazui Branch following the introduction of the service in the second half of 2000. Because the volume of business involved is relatively small, the agent could remember:
“The total amount of medical loans provided by the branch has been 79,000 yuan (US$9541.06), of which the largest was 40,000 yuan (US$4830.92) and the smallest 4,000 yuan (US$483.09).”
Compared to housing loans worth 400 million yuan (US$48.3 million) provided by this bank branch every year, 79,000 yuan (US$9541.06) in medical loans is negligible. What seems to be the problem?
Our reporter found that at present medical loans approved by the bank are limited to a few districts, a few hospitals and a few medical problems. For example, Shanghai Pudong Development Bank has loans available only for the department of ophthalmology in three hospitals including Shanghai Xinhua Hospital and Orient Hospital. Shenzhen Development Bank -- cooperating with Beijing Tongren Hospital -- provides medical credit for chochlear implants which cost several thousand yuan (1,000 yuan=US$120.77). This is a sum most families can afford, so they don’t have to ask a medical credit. However, the charge for some major operations in other departments such as organ implantation or cancer treatment is always above 10,000 yuan (US$1207.73), or even 100,000 yuan (US$12,077.29). Patients suffering from these diseases are more apt to be need of medical loans.
Another reason cited for the cold response to the availability of medical loans is the complicated procedures involved in applying for such loans. Our reporter learned that it takes one week for an applicant to get a loan. Relevant persons in financial circles said that bank credit evaluation systems are neither effective nor simple but rather complicated with miscellaneous formalities and strict requirements. Noting that medical loans are not a “free lunch” after all, some experts said that what is required is a healthy loan guarantee system with a good financial environment for both commercial firms and consumers. Then banks will be easier to approach, and more patients will be able to seek treatment for medical problems with borrowed money.
(北京晚报 [Beijing Evening Post], translated by Zhang Tingting for china.org.cn, May 6, 2002)
