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Traditional elderly healthcare service modes already can hardly meet the rapidly growing demand and high customer expectations. The community-based elderly service mode (CESM), as a new mode merging with the advantages of home-based and institution-based elderly service modes, is not yet widely applied in China. We first analyse the problems of CESM in terms of the government purchase of services (GPS) policy, governance theories and community elderly services coordination management. Then, we conclude the research in the fields of the GPS, community governance and service supply chain coordination, and study the experience of Hong Kong’s community care services system. On the basis, we propose an innovative structure of community-based elderly healthcare service supply chain (EHSSC), and define the connotation of EHSSC and its operational processes. Further, we optimise the operational mode for the EHSSC by using the option contract and service voucher scheme, define the roles and functions of government, community elderly service integrators, community elderly service providers and the elderly in EHSSC. The operation processes of community elderly services capacity are illustrated to systematically address the issues of ‘who participates in’ and ‘how to operate’ in CESM and coordinate the services capacity between the upstream and downstream. Finally, we put forward some constructive suggestions for the implementation of EHSSC with the option contract and service vouchers.

Optimising the Services Capacity Operation with Service Supply Chain and Option Theories for Elderly Healthcare Systems in China