Page 344 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China

2.14 Healthcare

Key Take-aways topics. Health issues are of great concern due to
pollution, tight schedules, and life pressures. The
Six medical FTZs are planned to be built expenditure in healthcare products and services
before the end of 2020. A research that Chinese consumers are willing to spend are
institute that focuses on the development of pilot ever-growing. With incomes increasing gradually
medical free trade zones was first founded in over the years, they tend to demand more latest
Shandong. medical treatment and services. Therefore,
new opportunities are created for foreign
As of February 2019, there had been a total of pharmaceutical and medical device companies
33,000 hospitals in China, an increase of 1,866 in the which are able to supply high tech products that
same period of 2018. In the first two months of 2019, local producers cannot (MtC).
there were 550 million patient visits to hospitals in
China, up 3.2 percent year on year. China’s medical Key tasks in expanding healthcare reform in
resources have soared as well. 2019 outlined by the General Office of the State
Council include efforts to provide more accessible
China’s demand for medical equipment has and cheaper healthcare services and to further
grown at a fast pace in the past decade. In the next reform the system of healthcare insurance,
decade, both production and demand will continue medical care and drug circulation. A package
to grow. of documents on advancing the reform will be
formulated, such as opinions on implementing the
4+7, China’s new volume-based purchasing policy Healthy China strategy. According to the circular,
represents a potential paradigm shift for business Healthy China will be carried out, and medical
models in the Chinese pharmaceutical industry. institutions will be better supported to provide
Stocks plummeted in late 2018 when the plan was public health services. It also said the disease
tested in 11 regions. prevention and control system should be further
reformed, and cancer prevention and treatment
Background should be enhanced, with the promotion of
cancer screening and accelerated registration and
Since April 2018, when China’s State Council examination of anti-cancer drugs both at home
General Office issued guidelines on the promotion and abroad. The circular asks to test centralized
of Internet plus healthcare, China’s healthcare drug procurement and usage, and reform public
industry entered a period of rapid growth. With hospitals’ compensation system, and local
such regulatory environment as tailwind, Internet authorities are required to build a dynamic and
pharmaceutical companies are moving from reasonable pricing system on healthcare services
an exploratory to a developmental stage and at public hospitals. Efforts should be intensified to
beginning to scale up. Regulators have added deepen comprehensive reform of public hospitals,
“fuel” to develop the industry while the Internet and modern hospital management will be piloted
and AI are fast becoming the new growth drivers in some hospitals. Cross-provincial settlement of
(Cision). Constant economy growth and financial medical bills should be delivered and improved,
improvement in China have raised its citizens’ and national and regional medical centers should
awareness around health-care and well-being be established to raise healthcare services in
central and western regions, it said. In addition,

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