Hospitals across the Country See Wave of Pay Cuts, Reflecting Financial Strain in China

China’s economy is on a downward trend, facing financial strain, leading to a wave of pay cuts in hospitals across the country. Recently, doctors at several top-tier hospitals in Guangzhou and Shenzhen have taken to social media to report salary reductions of up to 30% or even more drastic cuts, with even the night shift fees at Beijing Tongren Hospital being slashed in half. In some areas, doctors are being asked to return subsidies received during the pandemic.

According to a report from Caixin in early December 2024, the pay cuts for doctors in Shenzhen mainly come from reductions in performance-related bonuses, a trend also seen in top-tier hospitals. A surgeon at a top-tier hospital in Shenzhen revealed that salary cuts began as early as August 24, with performance bonuses decreasing by 50%. This doctor pointed out that the majority of hospital income is dependent on performance bonuses, as the basic salary is almost entirely deducted for social security and insurance. Another doctor from a different top-tier hospital in Shenzhen mentioned that departments have been notified of upcoming performance reductions in 2025, but the extent of the salary cuts remains unclear.

Traditionally, salaries for medical personnel in public hospitals consist of basic pay, performance bonuses, and various allowances. The distribution between basic pay and performance bonuses typically follows a “30-70” or “40-60” ratio.

Back in September 2023, Beijing Tongren Hospital also faced salary cuts, with a 50% reduction in performance bonuses and a decrease in night shift emergency fees from 130 yuan per shift to 65 yuan, and regular night shift fees from 90 yuan to 45 yuan.

One attending physician mentioned that their performance bonus, originally around 15,000 yuan per month, has now dropped to approximately 7,000 yuan, leading to a total income decrease to around 10,000 yuan, almost halving their earnings.

Some doctors have vented their frustrations on social media, expressing concerns that the continuous pay cuts may deter individuals from pursuing a medical career. They highlighted the shortage of pediatricians, as the qualification threshold for pediatricians is relatively lower compared to other specialties. In the past, hospitals would primarily recruit doctors with doctoral degrees, but now they are accepting candidates with lower qualifications to meet staffing demands, disregarding the quality of the medical staff, which could negatively impact patient care satisfaction.

A doctor from Guangdong shared their income details online, revealing that their total income in 2023 amounted to 460,585 yuan, but by 2024, it had drastically decreased to 262,316 yuan, a difference of almost 200,000 yuan.

Similarly, a doctor from Jiangxi confirmed that her husband’s hospital had reduced salaries by 50% each month, and she herself had not received a paycheck for the past four months. Furthermore, a doctor from Shandong mentioned that both her and her husband, working at public grade two hospitals, had not been paid for seven months. She emphasized that delayed salary payments and contributions to social security funds were prevalent in their region, foreshadowing even tougher times ahead in the following year.

A prominent blogger with millions of followers, known as “Dr. Urology,” disclosed on Weibo that pandemic subsidies were being reclaimed. In a post, he lamented that the 15.36% COVID-19 subsidies distributed in 2023 would be deducted from individuals’ personal bonuses that month before being directly transferred to a government-designated account by the hospital, despite the sacrifices made by healthcare workers during the pandemic.

Dr. Chen Sha (pseudonym), a physician at Shanghai Qingpu Hospital, expressed her dismay, pointing out the lack of recognition for healthcare workers who had risked their lives during the pandemic, only to face salary deductions afterward. She questioned the motivation and morale of medical staff with the ongoing salary cuts and decreasing support from health authorities amidst a surge in respiratory illnesses, stressing the need for adequate protection and support for frontline healthcare workers.

Public opinion widely perceives this situation as a clear indication of China’s deteriorating financial condition. In addition, due to a decrease in newborns, mainland China’s obstetrics and gynecology departments are also witnessing layoffs.

A doctor from Shandong Jinan Medical University, using the alias Dr. Shen Xia, highlighted the decline in hospital revenue post-pandemic, particularly in obstetrics and gynecology departments where the reduced number of child deliveries has resulted in fewer pediatric patients. Consequently, both obstetrics-gynecology and pediatrics departments have been severely affected. With diminishing patient numbers, profits decrease, leading to pay cuts and layoffs that have already begun, with some obstetrics-gynecology doctors being reassigned or let go. As the population of newborns continues to decline, more healthcare workers are predicted to face layoffs in 2025.

Due to fewer patients seeking medical care, some hospitals have initiated mergers. In October 2024, Shantou Second Hospital and Shantou Third Hospital merged to form Shantou City Hospital.