SummaryObjectiveIn China, patients generally seek health care at high‐level hospitals, which is leading to escalating medical costs and overloaded hospitals. Some studies have suggested that the health system is an important factor influencing individuals' health care‐seeking behaviour; however, this association has not been studied in much depth. We therefore examined the impact of the health system (in terms of the interaction between health insurance reimbursement and health workforce) on health care‐seeking behaviour.MethodsDrawing on national survey data from 2008 and 2013, we linked individual‐level data on choice of health care providers (our index of health care‐seeking behaviour) with county‐level data on the health workforce and health insurance. We then constructed a multilevel multinomial logistic model to examine the impacts of health insurance reimbursement (indexed as average reimbursement rate [ARR]) and the health workforce (number of registered physicians per 1000 population) at county hospitals and primary health care institutions (PHCs) on choice of inpatient care providers.ResultsIncreases in ARR at county hospitals were associated with a greater probability of visiting such hospitals (relative risk ratio [RRR] = 1.23), and this positive impact was even greater in county hospitals with higher physician densities (RRR = 2.76). Greater ARR in PHCs was associated with a 73% lower probability of visiting municipal‐ and higher‐level hospitals; increasing ARR was associated with an even lower probability when physician density in PHCs was considered (RRR = 0.09).ConclusionIncreases in the health insurance reimbursement and health workforce are necessary to improve health care access and thereby health care‐seeking behaviour. Thus, comprehensive health system reform is necessary.