The city of Beijing is attempting to push citizens towards more private options and is trying to steer them away from governmental institutions. The government is offering subsidizes for these non-governmental institutions (which is cheaper for them and more beneficial for citizens). If desired, welfare organizations for the elderly (as well as those for orphans) can apply to local government departments for 100 yuan (about $12.09) a month per bed. This measure also allows elderly homes that are owned by the government but run through private funding can be eligible for 50 yuan a month per bed subsidies. With the current elderly population in China continuing to grow, it is no surprise that it is expensive to care for these citizens (especially as health care is most expensive in old age). By subsidizing these beds 50-100 yuan a month, the government can save a lot of money while allowing citizens to benefit financially. Although the subsidizes may encourage more people to open up nursing homes, there is still an enormous shortage of care for the elderly. Right now there are only 1.5 beds for every 100 of Beijing's citizens (aged 60+). Hopefully with these new subsidies more people will decide to open up nursing homes.
information received from:
http://www.china.org.cn/english/Life/126277.htm
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