While the demand for health services keep escalating at the grass roots or rural areas of China, a substantial portion of healthcare resources remain stagnant in the more developed cities and this has entrenched health inequity in many parts of China. At its conception, China’s Deepen Medical Reform started in 2012 was intended to flush out possible disparities and promote a more equitable and efficient distribution of healthcare resources. Nearly half a decade of this reform, there are uncertainties as to whether the attainment of the objectives of the reform is in sight. Using a hybrid of panel data analysis and an augmented data envelopment analysis (DEA), we model human resources, material, finance to determine their technical and scale efficiency to comprehensively evaluate the transverse and longitudinal allocation efficiency of community health resources in Jiangsu Province. We observed that the Deepen Medical Reform in China has led to an increase concern to ensure efficient allocation of community health resources by health policy makers in the province. This has led to greater efficiency in health resource allocation in Jiangsu in general but serious regional or municipal disparities still exist. Using the DEA model, we note that the output from the Community Health Centers does not commensurate with the substantial resources (human resources, materials, and financial) invested in them. We further observe that the case is worst in less-developed Northern parts of Jiangsu Province. The government of Jiangsu Province could improve the efficiency of health resource allocation by improving the community health service system, rationalizing the allocation of health personnel, optimizing the allocation of material resources, and enhancing the level of health of financial resource allocation.

Public health equalization has a significant impact on residents’ health and economic growth. Recently, studies suggested the persistence of series of public health unequal issues in China, such as imbalanced government financial investment, unreasonable configuration of public health resources, etc. The healthcare system in Jiangsu province is a microcosm of the pattern of healthcare delivery in China. Identifying developmental differences in Jiangsu and consequential effect on healthcare output can serve as a good reference for comparing performance of healthcare facilities within China in general. Based on the Model of Health the Healthy Production from Grossman and Lucas’ New Endogenous Economic Growth Model, we selected data from China Statistical Yearbooks and Jiangsu Statistical Yearbooks. 13 cities in Jiangsu province were divided into three groups, categorized as economically developed areas, relatively economically developed areas and less-economically developed areas. The panel cointegration model and e PVECM PVECM error correction model based on E-G two-step method are utilized for empirical research. During the period of 2006–2015, there were differences between the short term effect and long term effect on regional development resulted by the public health equalization level of Jiangsu Province. In the short term, the healthcare investment equalization level has been improved, to a certain extent, which executes a certain promoting effect on the people’s health development and regional economic growth in the long term, which restraint the improvement and development of long term public health equalization level and stimulating on the residents’ health and economic growth. The government of China in general and Jiangsu province in particular could ensure the efficiency of public health human resources, reform the public hospital internal system and establish an effective competition system, aiming to improve the public health equalization and promote balanced development of residents’ health and economic growth.