Healthcare Services Opportunities

An Expert's View about Medical, Health and Cosmetics Products in China

Posted on: 27 Nov 2011

2011 is the first year of China’s 12th Five Year Plan and also the closing year of the Phase I Chinese healthcare reform. Currently, 16 cities are conducting national level pilot public hospital reform projects. These projects cover a population of over 80 million, larger than the UK but represents only 6.0% of the overall Chinese population. There are nearly 4000 public hospitals are under these scheme. There are an additional 31 cities at provincial level under the regional scheme.

Sector briefing Healthcare Services Opportunities in China Why China? th 2011 is the first year of China?s 12 Five Year Plan and also the closing year of the Phase I Chinese healthcare reform. Currently, 16 cities are conducting national level pilot public hospital reform projects. These projects cover a population of over 80 million, larger than the UK but represents only 6.0% of the overall Chinese population. There are nearly 4000 public hospitals are under these scheme. There are an additional 31 cities at provincial level under the regional scheme. In addition, there are 7,300 wards in hospitals ?We see a tremendous across China that are under reform for nurse opportunity for private care. Over100 hospitals in 22 provinces are developing its own hospital information investment in Chinese system. healthcare but these are complex deals with very high You can find general information on the levels of commitment that Chinese market conditions on UKTI?s website. require long term The Doing Business Guide for China gives an investment. ? Tim Clover, overview of China?s economy, business culture, CEO Of Moonray Healthcare ? potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Healthcare services opportunities in China However high profile services with guaranteed Opportunities medical quality for the educated middle class people in urban area still needs to improve. With the deepening of Chinese healthcare One reason is the lack of professionals in reform in 2011, the Chinese Government is health clinics. encouraging more private sector, the so-called ?social capital? or non-public provision, to step ? Private nursing home into the healthcare provision and financing. Opportunities for UK businesses in the Given the ageing population in China in both healthcare services industry include: developed east coastal and developing western regions, the Government has been promoting a ? Private hospital provision consistence policy to encourage private provision to invest in this field. Public hospital reform is the most challenging part of the overall Chinese healthcare reform ? Private health insurance commenced since April 2009. The vested interest embedded in the public hospital Financing is the major element that results in provision is a serious hurdle to reform. current ?profit -driven? practice in Chinese Therefore, five key Chinese ministries jointly healthcare provision. The ?so-called? public launched the Opinion on further Encouraging hospitals in China have never received and Guiding the Social Capital to Invest in sufficient financing to maintain daily operation. rd Healthcare Institutions on 3 December 2010. Currently, there are pilot projects for large This has been widely welcomed by domestic state-owned health insurance companies to and foreign funded non-public sectors. invest in hospitals. This takes place in individual regions but is not yet a national Currently the national reform panel is finalizing practice. a more detailed work-plan to endorse this policy in real practice. Each province is However, we consider that UK private health authorized and encouraged to implement a insurance providers and broker companies tailor-made policy and open its hospital market should monitor the situation regularly. to regional demand. This is in addition to the existing 16 pilot cities identified at national ? Professional training in hospital level. management and clinical governance ? Hospital solutions The Chinese State Council launched the ?Talent Development Programme for Healthcare Sector With the very first Hospital Build China in Mid to Long Term Period 2011-2020? in May exhibition and conference taking place in 2010. It is the commitment from the central Beijing in April 2011, the health authority and government to improve the management and public hospitals directors have realised that governance skills for healthcare policy and private industry involvement is capable in decision makers. The capacity building is also helping to improve hospital operation. For to cope with the deepening of Chinese instance, ?Green? design to build and/or healthcare reform as some of the health renovate infrastructure and facility is inspiring authority staff themselves are becoming the understanding about modernizing hospitals. hurdle to reform due to limited vision. ? Health screening and (lifestyle) There are many local players in this sector, management most of them have various links with Health Authorities. However UK business could This is an open market in China. Both the consider them as potential Chinese partners to public hospital and private sector are free to jointly deliver programmes. provide services. The competition is comparatively fair and each has unique selling ? Professional training in Continuing point. Given the growing demand and huge Medical Education (CME) population, the market share expands on an annual base, especially in the non-first tier The Chinese Ministry of Health issued its own cities. th Talent Development Plan for the 12 Five Year Plan 2011-1025. It focuses on professional UK Trade & Investment Sector briefing: Healthcare services opportunities in China training as the overall quality of services in clinical practicing is deteriorating. One reason is the fee-for-service financing system which causes health professionals to be profit driven instead of quality driven. Currently local recourses are available at some teaching hospital level across China. Therefore, the advice is to personalise and localize UK healthcare training programmes before approaching potential Chinese partners. If you have any questions on the opportunities above, contact Anna Zhao. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website UK Trade & Investment Sector briefing: Healthcare services opportunities in China Major events and activities UKTI contacts China Health Forum Anna Zhao www.chf-bj.org Trade & Investment Manager Time: 18-19 August 2011, Beijing British Embassy Beijing Tel: (0086 10) 5192 4323 Hospital Build China Email: anna.zhao@fco.gov.uk www.hospitalbuildchina.cn www.ukti.gov.uk Time: 19-21 May 2012, Beijing Carol Wang Trade & Investment Officer Find full details of all events in this British Embassy Beijing country and sector on the UKTI website. Tel: (0086 10) 5192 4473 New export events are added daily to the site Email: carol.wang@fco.gov.uk and you can register to be alerted to them on a www.ukti.gov.uk daily, weekly or monthly basis. David Ratcliffe UKTI?s Tradeshow Access Programme (TAP) Head of Life Sciences provides grant support for eligible Small & British Embassy Beijing Medium Sized Enterprises (SME's) to attend Tel: (0086 10) 5192 4439 trade shows overseas. Find out more about Email: david.ratcliffe2@fco.gov.uk UKTI support for attendance at overseas www.ukti.gov.uk events. UK Trade & Investment Sector briefing: Healthcare services opportunities in China Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Chinese market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in China, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Healthcare services opportunities in China
Posted: 27 November 2011

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