Health Care
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Michael Breger
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Despite technological breakthroughs, healthcare inequality remains a pressing public health challenge across developed and developing nations. Low levels of income or education mobility can exacerbate socioeconomic disparities, leaving children from disadvantaged families with fewer opportunities to improve their social and economic prospects. Moreover,  children in families with low-income backgrounds are also more likely to experience poor health outcomes, perpetuating a cycle of disadvantage.

Huixia Wang, a visiting scholar at Shorenstein APARC, sees this phenomenon as an opportunity to better understand the dynamics of intergenerational health and how to interrupt patterns of persistent health inequalities across generations. Her research aims to identify potential interventions to improve health outcomes in developing regions.

An associate professor at Hunan University, Wang has spent the 2024 fall quarter at APARC. She recently presented her research on the intricate dynamics of intergenerational health metrics, particularly in China and Indonesia. Watch her talk, “Intergenerational Persistence of Self-Reported Health Status and Biomarkers in Indonesia,” on our YouTube channel.

Barriers to Intergenerational Health

While much has been written about the transmission of income and education across generations, “much less is known about how health is passed down between generations," Wang notes, highlighting a gap in the existing research. Emphasizing that health is a crucial factor in determining overall well-being, as it affects everything from mental health to economic productivity and social mobility, she asserts that good health is linked to better educational outcomes, higher earning potential, and improved labor market performance. Poor health, on the other hand, is associated with lower educational attainment, reduced employment prospects, and higher rates of chronic illness.

Wang’s research approach centers on recognizing the multiple challenges in implementing maternal health-oriented policies. Having identified limited access to healthcare services as a significant barrier, she considers how, in many low-income and rural areas, “access to quality healthcare is constrained by poor infrastructure, lack of transportation, and shortages of healthcare professionals, making it difficult for pregnant women to receive essential care.”

Another obstacle is the prohibitive cost of healthcare. In countries where maternal health services are not subsidized or free, the financial burden of out-of-pocket expenses for transportation, medications, and other related costs can prevent women from accessing necessary care. Furthermore, Wang shows that low levels of maternal health education can contribute to poor health-seeking behaviors. “Many women may not recognize the warning signs of complications, may not fully understand the importance of prenatal care, or may be unaware of their rights to healthcare services,” she says.

Measuring Health Outcomes Across Generations

Wang acknowledges the difficulties in studying intergenerational health mobility, as it cannot be neatly defined and measured by observable metrics such as income or education. Health is much more subjective and varies from person to person. To gauge health outcomes, researchers must therefore rely on diverse and sometimes imprecise indicators, such as the presence of chronic diseases.

Moreover, to examine intergenerational mobility, researchers need data that includes health information for both parents and children. Such datasets are not always readily available, and those that do exist often lack the necessary granularity and long-term tracking to provide meaningful insights.

To overcome these challenges, Wang draws on a variety of panel data that tracks individuals over time, as well as survey data and self-reported status. For Wang, longitudinal studies are crucial for understanding how health disparities manifest and evolve over time. 

Using data from the Indonesia Family Life Survey, she combines subjective measures like self-reported health and objective measures such as pulse, BMI, hypertension, and anemia to capture a more complete picture of health mobility. This approach expands beyond previous studies, which typically relied on fewer health indicators and focused on developed countries. Her study includes a broad range of health variables and provides a unique look at the role of gender and socioeconomic factors in shaping health outcomes across generations.

Wang uses two primary methods for measuring intergenerational health mobility: one following the Intergenerational Health Association, which regresses children's health outcomes on those of their parents, and rank-rank regressions, which examine the persistence of health outcomes by analyzing percentile ranks. These techniques, adapted from income mobility research, allow her to assess health persistence and mobility across generations.

Future Directions and Policy Impact

Wang’s time at APARC has been instrumental in shaping and refining her research. "The opportunity to engage with experts from various fields [...] opened my eyes to new ways of thinking about my research," she shared. "The collaborative environment at APARC also made me realize how much I can learn from perspectives outside my immediate area of focus.”

Wang credits Stanford’s vibrant academic environment, with its rich array of seminars and talks, to broadening her understanding of Southeast Asian health systems, a subject she was less familiar with. She expressed gratitude to APARC faculty for their “invaluable guidance for both my research and my life at Stanford.” In particular,  APARC’s Asia Health Policy Program Director Karen Eggleston “dedicated a significant amount of time to advising my work, introducing me to key researchers in my field, and sharing the valuable resources that I might benefit from on campus,” Wang said.

Looking ahead, she is excited to continue exploring the role of health in intergenerational mobility, particularly in the Southeast Asian context, and plans to expand her research into the health effects of pollution, an area she has already begun to investigate. Wang also hopes to contribute to policymaking that addresses health inequality. By providing a deeper understanding of how health disparities are perpetuated across generations, she aims to inform policies that could improve health outcomes and reduce inequality in developing countries.

Wang’s research on intergenerational health mobility offers a fresh and much-needed perspective on the crucial yet understudied role of health in social mobility. She hopes her research helps policymakers and scholars address health inequalities that perpetuate socioeconomic disadvantage across generations.

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2025 Shorenstein Journalism Award Open to Nomination Entries

Sponsored by Stanford University’s Shorenstein Asia-Pacific Research Center, the annual Shoresntein Award promotes excellence in journalism on the Asia-Pacific region and carries a cash prize of US $10,000. The 2025 award will honor an Asian news media outlet or a journalist whose work has primarily appeared in Asian news media. Nomination entries are due by February 15, 2025.
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Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue

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Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue
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Economist Huixia Wang, a visiting scholar at APARC, discusses her research into healthcare economics and the reverberating effects of poor healthcare access on health outcomes across generations.

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Asia Health Policy Postdoctoral Fellow, 2024-2025
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Ph.D.

Mai Nguyen joins the Walter H. Shorenstein Asia-Pacific Research Center (APARC) as Asia Health Policy Postdoctoral Fellow for the 2024-2025 academic year. She holds a PhD in health services and health policy from Queensland University of Technology (QUT), Australia, and a Master of Science from Heller School for Social Policy and Management, Brandeis University.

Her doctoral research focused on how the expanding private healthcare sector can be managed more effectively to better supplement public health services to achieve universal health coverage in Vietnam. The study analyzed large and complex national health datasets from two consecutive Household Living Standard Surveys, clinical hospital data at national levels and in-depth interviews with key stakeholders of Vietnam's health system to investigate consumers' choice for private and public health care services in Vietnam. Her research findings have implications for policy change in terms of harnessing and regulating private health services in Vietnam and other Asia-Pacific countries, especially low and middle-income countries.

Dr. Nguyen has worked as a senior health specialist at Vietnam Ministry of Health. Her research interest stems from her professional experience in health policy and program management, including health policy and management, health services, private healthcare and health equity. Her works have been published in many Q1-international journals such as BMC Public Health, BMC Health Services Research, Human Resources for Health and International Journal of Health Policy and Management.

At APARC, Dr. Nguyen will extend her research on the roles of private healthcare to supplement the public health sector to address the growing burden of chronic diseases and conditions in Vietnam.

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Visiting Student Researcher, 2024-2025
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Xinxin Lu joins the Walter H. Shorenstein Asia-Pacific Research Center (APARC) as visiting student researcher during the 2024-2025 academic year. She is currently a doctoral student in Sociology at Tsinghua University. Her dissertation focuses on "The Dying and the Chinese Family: The Economic, Moral, and Cultural Logic of End-of-Life Care in China."

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Advancing Healthcare event by AHPP

Co-sponsored by Peking University's Institute for Global Health and Development and the Asia Health Policy Program

(Friday, September 13, 2024, 9:00am to 10:30am - Beijing time)

In this seminar, distinguished speakers will share their insights on the intersection of cutting-edge technology and healthcare policy. The event will feature short presentations followed by an in-depth discussion, exploring what it takes to bring innovative healthcare solutions from concept to implementation.

Representing different facets of the healthcare ecosystem, the presenters will address key topics such as the application and economic impact of surgical robotics, the delicate balance between pharmaceutical regulation and innovation, technology for population health and chronic disease control, and the development of digital solutions for aging populations.

This seminar offers a unique opportunity for attendees to gain valuable insights into the latest trends in healthcare technology and policy, and to engage in meaningful dialogue about shaping a healthier, more efficient future for all.

Xiaoyanlei 091224

Dr. Lei Xiaoyan is the MOE Cheung-Kong Scholar Professor of Economics, and PKU Boya Distinguished Professor. She is currently the chair of the Academic Committee of the National School of Development, the director of the PKU Center for Healthy Aging and Development Studies, and deputy director of the MOE-PKU Center for Human Capital and National Policy Research, co-editor of the Journal of Economics of Aging, and a research fellow of IZA. Her research spans the areas of labor economics, health economics, and economics of aging. Her research has been published in Review of Economics and Statistics, American Economic Journal: Applied Economics, among others. Since 2020, she has consecutively been included on Elsevier’s List of Highly-cited Scholars in China. She received a Ph.D. in Economics from the University of California, Los Angeles in 2007.

Min Yu 091224

Professor Min Yu graduated from the Department of Clinical Medicine at Zhejiang Medical University with a Bachelor of Medicine degree in 1988 and a Master's degree in Public Health from Beijing Medical University in 1998.

Professor Yu focuses on the prevention and control of chronic diseases and injuries. He has served as the chief editor or co-editor of five monographs and has published over 20 peer-reviewed papers. He has led one project under the National Key R&D Program’s “Precision Medicine Initiative” and three provincial or ministry-level projects. Professor Yu has received the third prize of the Science and Technology Award from the Chinese Preventive Medicine Association, the third prize of the Provincial Science and Technology Advancement Award, and the second prize of Provincial Medical and Health Science and Technology.

Beinilyu 091224

Dr. Beini Lyu's research interests are pharmacoepidemiology, clinical epidemiology of chronic diseases, real-world studies, and health technology assessment. Dr. Lyu’s work has been published in top medical journals such as the Lancet Regional Health-Americas, Diabetes Care, and the American Journal of Kidney Diseases. She served as PI of a research grant from the American Society of Diagnostic and Interventional Nephrology (ASDIN). She has received the Donn D 'Alessio Outstanding Student Award from the Department of Population Health at the University of Wisconsin, the American Heart Association Student Research Fellowship in Cardiovascular Disease, and the Chinese Government Award for Outstanding Self-Financed Student Abroad. Dr. Lyu received her M.D. from Peking University and her Ph.D. in epidemiology from the University of Wisconsin-Madison.

Jianan Yang 091224

Dr. Jianan Yang's primary research fields are health economics and development economics, with specific interests in health policy reform, health behavior and healthcare demand, and pharmaceutical innovation. Her research papers have been published in leading international journals in development economics, such as the Journal of Development Economics. She has also served as an anonymous reviewer for renowned academic journals including the Journal of Public Economics, the Journal of Development Economics, and the Journal of Health Economics, among others. She earned her bachelor’s degrees in Economics and Mathematics from Renmin University of China in 2016, and her Ph.D. in Economics from the University of California, San Diego in 2022. Before joining Peking University, she was a postdoctoral fellow in the Asian Health Policy Program at Stanford University.

Yuhang Pan 091224

Dr. Yuhang Pan's research fields include environmental economics, health economics, and development economics, with a focus on using a causal inference approach to study the impact of environmental pollution, public policy, and climate change on health and social welfare. His works have been published in economics and scientific journals, such as Science, Nature Sustainability, and the Journal of Environmental Economics and Management. Dr. Pan obtained his undergraduate degree from Beijing Normal University in 2015 and his doctoral degree from the Hong Kong University of Science and Technology in 2021. Prior to joining Peking University, he worked as a postdoctoral researcher at the Faculty of Business and Economics at the University of Hong Kong.

Yuhang Pan, Assistant Professor of Economics, Peking University Institute for Global Health and Development

Online via Zoom Webinar

Xiaoyan Lei, Professor of Economics, Peking University National School of Development and Institute for Global Health and Development
Min Yu, Deputy Director, Zhejiang Provincial Center for Disease Control and Prevention, and Standing Committee Member of Injury Epidemiology Branch of the Chinese Preventive Medical Association
Beini Lyu, Assistant Professor, Peking University Institute for Global Health and Development
Jianan Yang, Assistant Professor, Peking University Institute for Global Health and Development
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The Walter H. Shorenstein Asia-Pacific Research Center (APARC) is pleased to invite applications for a host of fellowships in contemporary Asia studies to begin in Autumn quarter 2025.

The Center offers postdoctoral fellowships that promote multidisciplinary research on Asia-focused health policy, contemporary Japan, and contemporary Asia broadly defined, postdoctoral fellowships and visiting scholar positions with the Stanford Next Asia Policy Lab, and a fellowship for experts on Southeast Asia. Learn more about each opportunity and its eligibility and specific application requirements:

Asia Health Policy Program Postdoctoral Fellowship

Hosted by the Asia Health Policy Program at APARC, the fellowship is awarded to one recent PhD undertaking original research on contemporary health or healthcare policy of high relevance to countries in the Asia-Pacific region, especially developing countries. Appointments are for one year beginning in Autumn quarter 2025. The application deadline is December 1, 2024.

Japan Program Postdoctoral Fellowship

Hosted by the Japan Program at APARC, the fellowship supports research on contemporary Japan in a broad range of disciplines including political science, economics, sociology, law, policy studies, and international relations. Appointments are for one year beginning in Autumn quarter 2025. The application deadline is December 1, 2024.  

Shorenstein Postdoctoral Fellowship on Contemporary Asia

APARC offers two postdoctoral fellowship positions to junior scholars for research and writing on contemporary Asia. The primary research areas focus on political, economic, or social change in the Asia-Pacific region (including Northeast, Southeast, and South Asia), or international relations and international political economy in the region. Appointments are for one year beginning in Autumn quarter 2025. The application deadline is December 1, 2024. 
 

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Stanford Experts Assess the Future of the Liberal International Order in the Indo-Pacific Amid the Rise of Autocracy, Sharp Power

At the Nikkei Forum, Freeman Spogli Institute scholars Oriana Skylar Mastro, Michael McFaul, Gi-Wook Shin, and Kiyoteru Tsutsui considered the impacts of the war in Ukraine, strategies of deterrence in Taiwan, and the growing tension between liberal democracy and authoritarian populism.
Stanford Experts Assess the Future of the Liberal International Order in the Indo-Pacific Amid the Rise of Autocracy, Sharp Power
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The Center offers multiple fellowships for Asia researchers to begin in Autumn quarter 2025. These include postdoctoral fellowships on Asia-focused health policy, contemporary Japan, and the Asia-Pacific region, postdoctoral fellowships and visiting scholar positions with the Stanford Next Asia Policy Lab, a visiting scholar position on contemporary Taiwan, and fellowships for experts on Southeast Asia.

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George Krompacky
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On October 18, as part of its autumn 2023 seminar series on APEC in advance of the organization's meeting in San Francisco in November, Shorenstein APARC and its Asia Health Policy Program (AHPP) presented the series' second event, Asia-Pacific Digital Health Innovation: Technology, Trust, and the Role of APEC. The featured panelists were Kiran Gopal Vaska, Director of the National Health Authority of India, and CK Cheruvettolil, the Senior Strategy Officer, Digital Health and Artificial Intelligence, at the Bill & Melinda Gates Foundation. Siyan Yi, the Director of the Integrated Research Program at the National University of Singapore and a former AHPP fellow, moderated the conversation.

While India is not an APEC member, Indian initiatives are examples of leveraging technology to better the health of the most vulnerable citizens in low- and middle-income countries (LMICs). Kiran Gopal Vaska gave an overview of the Ayushman Bharat Digital Mission (ABDM), India's latest health initiative that focuses on the interoperability of health records, services, and health claims. He stressed that ABDM was built on previous digital infrastructure, like Aadhaar, the national digital identity system, and Digilocker, a digital storage scheme for citizens' health and other records.

In ABDM, we do just three things: interoperability of health records, interoperability of services, and interoperability of health claims.
Kiran Gopal Vaska
Director of the National Health Authority of India

The approach India has taken is for the government to build the rails—the infrastructure of the system—and create a space where the private sector can develop applications integrated with that space through application programming interfaces (APIs), avoiding the siloing that can hamper the interoperability of data.

Regarding health data, privacy is a crucial concern at the patient level. ABDM addresses this concern through the use of a consent artifact. Individuals decide whether hospitals or other medical service providers have access to their data, and this access has levels of granularity: you can share specific portions of 7 different data types, like immunizations or prescriptions. You can limit that sharing to a particular period, like one day.

Also participating on the panel was CK Cheruvettolil, who discussed strategies by the Bill & Melinda Gates Foundation in leveraging the power of mobile phones to augment the work of Accredited Social Health Activists (ASHAs), the more than one million female frontline health workers in India. ASHAs can use mobile phone cameras, sensors, and streaming data to better care for low-birth-weight babies and other patients. 

If [software] is developed in isolation without understanding that social context, you would lose a huge portion of the population, you'd lose that effectiveness.
CK Cheruvettolil
Senior Strategy Officer, Digital Health and Artificial Intelligence, Bill & Melinda Gates Foundation

He explained the critical role of taking local context into account when developing software by using the example of pregnant Indian women in their third trimesters. The custom for Indian mothers, especially in rural areas, is for the child to be born in the maternal grandparents' home. If software were to store only the mother's address, healthcare workers in the grandparents' jurisdiction would not know that a pregnant woman in the critical third trimester would soon be giving birth at a local address.

Kiran Gopal Vaska noted that India had solved the technological issues, and now the task was to push for adoption. He emphasized that the technologies underlying India's digital health stack were created as public goods for the world, and for LMICs to support each other in advancing digital health technologies, the key was interoperability, "using standards that are accessible and acceptable worldwide."

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Trade Experts Gather to Discuss APEC’s Role and Relevance

Ahead of the 2023 Asia-Pacific Economic Cooperation (APEC) convening in San Francisco, APARC kicked off its fall seminar series, Exploring APEC’s Role in Facilitating Regional Cooperation, with a panel discussion that examined APEC’s role and continued relevance in a rapidly-evolving Asia-Pacific region.
Trade Experts Gather to Discuss APEC’s Role and Relevance
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How South Koreans Feel About Telemedicine as an Alternative to In-Person Medical Consultations

A new study, co-authored by Asia Health Policy Director Karen Eggleston, investigated preferences for telemedicine services for chronic disease care in South Korea during the COVID-19 pandemic and found that preferences differed according to patient demographics.
How South Koreans Feel About Telemedicine as an Alternative to In-Person Medical Consultations
The Future of Health Policy: Reflections and Contributions from the Field
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Health Policy Scholars and Practitioners Examine the Future of the Field

In the third installment of a series recognizing the 40th anniversary of Stanford’s Walter H. Shorenstein Asia-Pacific Research Center, the Asia Health Policy Program gathered alumni to reflect on their time at APARC and offer their assessments of some of the largest challenges facing healthcare practitioners.
Health Policy Scholars and Practitioners Examine the Future of the Field
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Shorenstein APARC continued its APEC seminar series with the second installment, Asia-Pacific Digital Health Innovation: Technology, Trust, and the Role of APEC, a panel discussion that focused on how India’s digital health strategy has evolved and its lessons for other countries creating their own.

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George Krompacky
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Telemedicine has faced an uphill battle in South Korea and in fact, under the nation’s Medical Services Act, it is currently prohibited, a result of opposition from the medical community and other stakeholders. However, during the height of the COVID-19 pandemic, the South Korean government temporarily allowed for prescriptions and counseling by phone, which gave investigators the opportunity to examine patient preferences toward the service. 

It has been demonstrated that for consultations on chronic diseases—diabetes, hypertension, and heart disease—telemedicine is effectively equal to in-person visits, and moreover is convenient. Previous studies have looked at patient attitudes toward telemedicine but not many have used the COVID-19 pandemic as a backdrop. 

A new study, published in the Asia Pacific Journal of Public Health, helps to address this knowledge gap. The researchers focused on patients with the chronic diseases of diabetes and hypertension in South Korea and asked them about their preferences for telemedicine versus in-person care, including under different levels of recommended social distancing.

The co-authors of the study are Karen Eggleston, director of the Asia Health Policy Program at Shorenstein APARC; Annie Chang, ’21, MS ’22, currently an MD candidate at Icahn School of Medicine at Mount Sinai in New York City, who started the project as a Stanford student; Richard Liang, MD/PhD candidate at Stanford, and Daejung Kim of the Korea Institute for Health and Social Affairs.

The data was collected from a larger study on the impacts of the pandemic on the management of chronic disease in a number of Asian countries.

Chang notes that her research with Eggleston began after taking her course Health and Healthcare Systems in East Asia: “As a Korean American, I was naturally interested in learning more about South Korea and its healthcare system. I had the opportunity to work with Dr. Eggleston during the COVID-19 pandemic, when telemedicine usage surged globally.”

The study findings indicate that respondents did not have a strong preference for telemedicine services during the COVID-19 pandemic. This could be attributed to the prohibition of such services outside of the pandemic, to unfamiliarity with the technology, or to other factors.

However, the results show that attitudes toward telemedicine differed among demographic segments: younger patients, who tend to be more familiar with new technologies, had a higher preference for telemedicine, as did males (who are more likely to be employed, restricting their time for in-person visits), and those whose access to healthcare was more restricted.

This research carries significant policy implications concerning the advancement of telemedicine in South Korea and elsewhere. To make better use of telemedicine, policymakers should raise awareness of and familiarity with the services, especially among older populations who are less comfortable with new technologies. There is also a need to develop basic guidelines for telemedicine practices like reimbursement and data security to encourage the adoption of telemedicine as a viable alternative to in-person consultations. 

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An Update to a Classic Work of Health Economics

Asia Health Policy Program Director Karen Eggleston has coauthored the new third edition of Victor Fuch's 'Who Shall Live: Health, Economics, and Social Choice,' an authoritative book considering the great health challenges of our time.
An Update to a Classic Work of Health Economics
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A new study, co-authored by Asia Health Policy Director Karen Eggleston, investigated preferences for telemedicine services for chronic disease care in South Korea during the COVID-19 pandemic and found that preferences differed according to patient demographics.

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Noa Ronkin
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This announcement was updated on October 6, 2023, to reflect the addition of two new fellowship offerings focused on contemporary Taiwan.


The Walter H. Shorenstein Asia-Pacific Research Center (APARC) is pleased to invite applications for a suite of fellowships in contemporary Asia studies to begin fall quarter 2024.

The Center offers postdoctoral fellowships that promote multidisciplinary research on Asia-focused health policy; contemporary Japan; contemporary Asia broadly defined; postdoctoral fellowships and visiting scholar positions as part of the new Stanford Next Asia Policy Lab; and a fellowship for experts on Southeast Asia. Learn more about each opportunity and its eligibility and specific application requirements:

Asia Health Policy Postdoctoral Fellowship

Hosted by the Asia Health Policy Program at APARC, the fellowship is awarded annually to one recent PhD undertaking original research on contemporary health or healthcare policy of high relevance to countries in the Asia-Pacific region, especially developing countries. Appointments are for one year beginning in fall quarter 2024. The application deadline is December 1, 2023.

Postdoctoral Fellowship on Contemporary Japan

Hosted by the Japan Program at APARC, the fellowship supports research on contemporary Japan in a broad range of disciplines including political science, economics, sociology, law, policy studies, and international relations. Appointments are for one year beginning in fall quarter 2024. The application deadline is December 1, 2023.  
 

Shorenstein Postdoctoral Fellowship on Contemporary Asia

APARC offers two postdoctoral fellowship positions to junior scholars for research and writing on contemporary Asia. The primary research areas focus on political, economic, or social change in the Asia-Pacific region (including Northeast, Southeast, and South Asia), or international relations and international political economy in the region. Appointments are for one year beginning in fall quarter 2024. The application deadline is December 1, 2023.  
 

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Stanford Next Asia Policy Lab team members at Encina Hall, Stanford
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New Stanford Next Asia Policy Lab to Tackle Emerging Challenges in Asia

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The Cost of the "Taiwan Contingency" and Japan's Preparedness

The ultimate choice that must be made.
The Cost of the "Taiwan Contingency" and Japan's Preparedness
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The Center offers a suite of fellowships for Asia researchers to begin in fall quarter 2024. These include postdoctoral fellowships on Asia-focused health policy, contemporary Japan, and the Asia-Pacific region, postdoctoral fellowships and visiting scholar positions with the Stanford Next Asia Policy Lab, and fellowships for experts on Southeast Asia.

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Noa Ronkin
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Do increases in medical spending improve health outcomes? To answer this question, analysts need to quantify the net value of medical spending and measure the productivity of medical care with the output of improvement in survival and quality of life, thereby deducing for what medical conditions the “bang for the buck” is greatest and for what conditions spending outstrips gains in health improvement.

This condition-specific, quality-adjusted net value approach to health spending is known as a “satellite account for health” because it “orbits around” the national income and product accounts that include aggregate health spending to provide a clearer picture of productivity in the health sector. Thus far, researchers have applied this account to the U.S. health sector only, but it would be highly beneficial for many economies. One notable beneficiary would be South Korea, one of the most rapidly aging societies globally. Now new research by Karen Eggleston, the director of APARC’s Asia Health Policy Program, studies the link between medical spending and health outcomes in South Korea, providing evidence on the productivity of medical spending over recent decades.

The research, published by the East-West Center, develops an estimate of the net value of Korean medical spending, which has outpaced most other countries in recent decades. To generate this estimate, Eggleston compares the gains in life expectancy at birth to the increases in medical spending for 2000–2019. Data comes from Korean lifetables and medical expenditures per capita, available from the Korean Statistical Information Services.


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Korea can develop an accurate measure of medical productivity and a more accurate measure of overall economic productivity while becoming a global pioneer of “health satellite accounts” for overall populations.
Karen Eggleston

Eggleston shows that, even with the most conservative assumptions ($50,000 per life-year and only 10 percent of health gains due to medical care), the net value of Korean medical spending is positive and substantial. Korean life expectancy at birth increased from 76 in 2000 to 83.3 in 2019, while lifetime medical spending increased by over $19,000. The value of 7.3 additional years of life far outweighs even this rapid increase in spending, implying substantial productivity growth in Korea’s health sector.

Moreover, evidence on condition-specific spending changes and health improvements suggests that Korea’s rapid spending increases yield significant net value. Eggleston’s research indicates that improvements in survival for key conditions afflicting Koreans, such as stroke and cancer, point to productivity gains. “Korea could be a pioneer in developing a national health account that accurately measures net value by medical condition,” she writes.

Condition-specific metrics of health gain per won spent on treatment can help to guide the allocation of investments to promote longer, healthier lives. In the future, analysts could also link condition-specific improvements in survival and morbidity to earnings. Such linkage would particularly benefit South Korea, where focusing on the productivity of older adult employment is crucial given its high labor force participation and relatively low income of older Koreans.

Eggleston advocates for the Korean government to develop a national satellite account for health that can provide valuable evidence for prioritizing investments to address the country’s most pressing health challenges so that productivity improvement will contribute to longer, healthier lives. “By linking National Health Insurance and health outcome data, Korea could develop an accurate measure of medical productivity and a more accurate measure of overall economic productivity, while pioneering development of ‘health satellite accounts’ for overall populations,” Eggleston argues.

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Look South

Opportunities for Korea-India Relations
Look South
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Most Japanese Support Same-Sex Marriage, New Public Opinion Survey Finds
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Research by Stanford health economist Karen Eggleston, the director of APARC's Asia Health Policy Program, offers evidence on the link between medical spending and health outcomes in South Korea, showing how the country can benefit from developing a “satellite account for health” to promote high-value innovations for longer, healthier lives.

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Background

The prevalence of diabetes has risen sharply in China. Improving modifiable risk factors such as glycaemia and blood pressure could substantially reduce disease burden and treatment costs to achieve a healthier China by 2030.

Methods

We used a nationally representative population-based survey of adults with diabetes in 31 provinces in mainland China to assess the prevalence of risk factor control. We adopted a microsimulation approach to estimate the impact of improved control of blood pressure and glycaemia on mortality, quality-adjusted life-years (QALYs), and healthcare cost. We applied the validated CHIME diabetes outcomes model over a 10-year time horizon. Baseline scenario of status quo was evaluated against alternative strategies based on World Health Organization and Chinese Diabetes Society guidelines.

Findings

Among 24,319 survey participants with diabetes (age 30–70), 69.1% (95% CI: 67.7–70.5) achieved optimal diabetes control (HbA1c <7% [53 mmol/mol]), 27.7% [26.1–29.3] achieved blood pressure control (<130/80 mmHg) and 20.1% (18.6–21.6) achieved both targets. Achieving 70% control rate for people with diabetes could reduce deaths before age 70 by 7.1% (5.7–8.7), reduce medical costs by 14.9% (12.3–18.0), and gain 50.4 QALYs (44.8–56.0) per 1000 people over 10 years compared to the baseline status quo. The largest health gains were for strategies including strict blood pressure control of 130/80 mmHg, particularly in rural areas.

Interpretation

Based on a nationally representative survey, few adults with diabetes in China achieved optimal control of glycaemia and blood pressure. Substantial health gains and economic savings are potentially achievable with better risk factor control especially in rural settings.

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Publication Date
Subtitle

A Microsimulation Modelling Study

Journal Publisher
The Lancet Regional Health - Western Pacific
Authors
Jianchao Quan
Zhenping Zhao
Limin Wang
Carmen S. Ng
Harley H. Y. Kwok
Harley H. Y. Kwok
Mei Zhang
Sunyue Zhou
Jiaxi Ye
Xin Jiong Ong
Robyn Ma
Gabriel M. Leung
Karen Eggleston
Maigeng Zhou
Number
100690
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