The third sector and residential care for the elderly in China's transitional welfare economy

This article examines third-sector welfare homes for Chinese elderly and argues that four factors affect their survival and development prospects: the extent care establishments meet the needs of their users; how successfully they manage their human resources; whether they ensure their financial sustainability; and whether they satisfy the expectations of their investors. The data reveal that while care homes generally serve their customers well and maintain staff satisfaction, they encounter difficulties in financing and service operation that pose grave challenges to their investors. The resulting problems cast a shadow over the future prospects of old-age care homes and raise questions concerning the state's non-profit policy. © 2008 National Council of the Institute of Public Administration Australia.