The regulation of private hospitals in Asia

Private providers play a significant role in the provision of health services in low and middle income countries (LMICs), and the number of private hospitals is increasing rapidly. The growth of the sector has drawn attention to the many problems that are often associated with this sector and the need for effective regulation if private providers are to contribute to the effective provision of healthcare. This paper outlines three main regulatory strategies-command and control, incentives, and self-regulation, providing examples of each approach in Asia. Traditionally, command and control regulatory instruments have dominated the regulation of private hospitals in Asia; however, when deciding on which approach is most appropriate, it is important to consider the goal of the regulation, the context in which it is to be implemented, and the advantages and disadvantages of each approach. This paper concludes that regulation needs to extend beyond command and control to include a full range of mechanisms. Doing so will help address many of the challenges found within individual approaches, in addition to helping address the regulatory challenges particular to many LMICs.