Improvements in rural health care in China in the 1950s, 1960s and 197
0s were largely due to the development of cooperative medical schemes
(CMSs) and the establishment of a three-tier rural health network. Sin
ce the economic reforms were instituted in the late 1970s, the financi
ng and delivery of rural health services have seen many changes, some
positive, others not. Most CMSs have collapsed. In the absence of CMSs
, the rural population has to pay for health care out-of-pocket and po
or families have greater difficulty in getting access to essential hea
lth care. In the meantime, emphases of health services have tended to
shift from lower to higher levels, from preventive to curative service
s, and from planning and management to market forces. This paper outli
nes the evolution of CMSs, reasons for their collapse, and their likel
y impact on rural health services. The main focus is on the developmen
t of a new generation of rural cooperative health care schemes, given
their importance in the process of consolidating the rural three-tier
health network after the impact of the economic reforms: the character
istics of some schemes, the apparent conditions for success, and gover
nment policy towards the development of cooperative health care financ
ing are presented.