Putting hospitals on the road to recovery

Moreover, if a person killed or injured in an auto accident is in financial difficulties, the government will provide a onetime payment for funeral or treatment costs, but will not claim reimbursement.

In most cases, however, once the patient has been treated the hospital provides the police traffic department with details of the costs, which the police will then examine. Once they have confirmed the details, usually within three working days of receiving notification, the police will contact the fund and authorize payment to the hospital.

Eliminating delays

Wan Bin, an expert with Zhejiang Academy of Social Sciences, urged the introduction of the system in other cities. "I've noticed that many people are applauding the establishment of the fund, but it should have been implemented years ago. We've heard enough stories about people who have died because of a lack of money for medical treatment after they sustained serious injuries in traffic accidents. This is not the fault of hospitals - they aren't charities. It's the government's responsibility to make sure that patients receive treatment before the money is paid," he said.

Wang Xiaogang, deputy-president of the First Affiliated Hospital of Wenzhou Medical University, said the fund will help to eliminate delays in the provision of care. "People criticize hospitals for not treating patients quickly enough, but they should understand that every year my hospital has millions of unpaid bills. These unpaid accounts add heavy pressure to our regular operations. The fund is a form of insurance for people who have been in traffic accidents, but it's also an insurance policy for us," he said.

While most observers have applauded Wenzhou's move, some are concerned that cash-strapped local governments in relatively poorer provinces and cities will not be able to set up a fund.

Wen Changjun, a professor at Fudan University's School of Public Health, said those fears are not unfounded, and pointed out that over the years there have been several examples of pilot programs that were not sustainable over the long term. Wenzhou is a wealthy city in terms of public finance, so it can afford the fund, but that doesn't mean the situation applies to other cities, he said.

"The main problem is that the aid fund is a quantitative recovery mechanism, and it's difficult to guarantee normal operations because a number of practical issues need to be considered. First, the fund management leadership team includes many city departments, but they generally have no legal muscle, so it's difficult to pass legislation to exercise the right to recover the money. Second, a lot of accidents involve vehicles registered in other cities or provinces, which means that many cases remain unresolved because it's hard to find the people who should be held accountable," he said

Wen suggested that in addition to the limited amount the local government can allocate, the fund could be consolidated by opening it to public donations and other sources of finance. "To ensure the smooth running of the 'Save people first and pay later' system, the government should seek ways of establishing a sound, operable resource mechanism," he said.