Summary
China’s government is spearheading an aggressive reform of the country’s healthcare system as it seeks to expand access to care and improve the performance of the healthcare system. While health spending has risen, however, a rapidly ageing population is only serving to exacerbate the strains on the public sector as the system struggles to cater for a rising number of patients with chronic diseases. The government is therefore encouraging the private sector to take over some of the burden of care delivery, in the hope of developing an efficient mix of public and private providers and suppliers to serves its citizens’ needs.
In this white paper, we examine the government policies and market opportunities that underpin private investor confidence in China’s healthcare market, as well as the challenges that are currently limiting growth. Over the past five years, as China has gradually lifted its previously stringent controls on market access, the country’s healthcare sector has seen a flurry of private investment deals from both foreign and local companies. These pioneers have fostered the rapid development of the industry, as they learnt to navigate the intricacies of engaging local authorities and of operating a healthcare facility in China.
Key Points
This paper highlights several prominent private investors of hospitals and aged care centres, and profiles their market approach in order to pass on the fruits of their experience. We explore how some have opted for diversification in order to maximise revenue growth, while others have focused on streamlining costs or deepening their use of local knowledge and expertise, particularly in the area of hospital management.
