China 2030 programme is opening the door to foreign operators
Regular readers will have picked up on a recurring theme when it comes to the Chinese healthcare market – it’s notoriously difficult for foreigners to get a foothold. But no sooner had we written our most recent piece about this than a European operator called us up to tell us that despite the many pitfalls, there are substantial opportunities for those able to cut the right deals.
This is because of the revitalisation of the Chinese healthcare which has led to the government looking outside its borders for help with an already overburdened system and aging population.
Our source, based in Europe and currently tendering for bids, tells us: ‘The Chinese have started a program called Healthcare China 2030, an initiative that will bring back primary care in a modern fashion and they are going to revitalise the whole healthcare system. Foreign companies are being invited to play their part. This is new, and we’re having exciting talks about the services we might provide.
“China is probably undergoing the largest change to a healthcare system the world has seen. Obamacare was significant but in China, they know that the hospital system is tremendously overburdened and they’re looking to change things. It starts with building a primary healthcare system – and keeping people out of hospital which is currently many patients first port of call.
“When you talk to a Chinese doctor about how many patients he sees a day it’s two to three times what an English doctor would see so we’re up in the hundred patients per day range. They only have a few minutes with each patient and they are completely exhausted.
“China needs to put a proper primary care system in place. Currently, it doesn’t have one.”
Our source adds the current hospital revenue model is at the root of the country’s healthcare problems, and supports over-prescription, adding: “Hospitals get 1/3 of their money from the state, 1/3 is patient/state or private insurer, and 1/3 of the revenue is from medication that is prescribed at the hospital.
“If you come in with a minor issue you probably end up with a prescription for expensive antibiotics.
“The good thing now is they are aware of the problem with their incentive scheme – and are open about it.
Among the Chinese companies involved in putting this new system in place is Future Intelligence, a private company with strong support from the government which has been charged with organising the rollout of chronic disease management in three provinces, including Shangai.
Healthcare Nova understands discussions are underway for a pilot project involving a European company to provide remote care and monitoring.
Elsewhere, plans are in place to build an ‘internet hospital” in Shenzen on the Hong Kong border in China.
Our source explains: “It was described to me as ‘internet plus’ – everything that can be done remotely will be done that way, particularly advice and consultations. This isn’t like doctors on demand, this is a hospital setup where you call in when you’re sick.
“It will also be a hub for remote chronic disease management. Hospitals are pushing more and more towards dealing with patients at home. Hospitals will increasingly be seen as the venue of last resort.”
We would welcome your thoughts on this story. Email your views to David Farbrother or call 0207 183 3779.
