hospital market in China

Hospital market in China is actively being privatized

Chinese Hospital industry, which is supposed to be the third largest in the world, has been developing at 13% over the last few years. Public hospitals dominate the market although a number of private hospitals which is increasing every year. This trend is primarily caused by increasing demand of high quality medical care from middle class customers. Chinese state healthcare is far behind European standard and does not attract much investment and government funds. In China, only 5% of GDP is send on healthcare sector, while this number is doubled in European countries. This leads many Chinese middle class patients take medical treatment in Europe rather than at home.

High quality medical care is now crucial for patients in China

As it was mentioned before, due to increasing demand of high quality healthcare service, more private hospitals are opening each year. Being initially 9%, it is expected to grow to 15% by the next year. Chinese government seeks to improve quality of the sector by attracting foreign and domestic investment. Particular measures, which were taken to accelerate an inflow of investment into the sector, include easing ownership rules. For example, before domestic investor must have accounted for at least 30% of hospital ownership, while now investors from Hong Kong, Macau and Taiwan are allowed to account for 100% of ownership. Some regulations also refer to other foreign investors, including 90% ownership permission in Chengdu. Such hospital as Hong Kong Phoenix International Investment Group, YMCI, SL PHARM, Xi’an Kaiyuan Investment Group Company Limited and Jinling Pharmaceutical Company Limited, being initially privately-owned, were transferred to public ownership in 2010.


We are the top and most visible Web & Marketing Agency for China you will find on the web. Our Services: E-Commerce, Search Engine Optimization, Advertising, Weibo, WeChat, WeChat Store & PR.

Hospital market in China is profitable

Hospital market in China is seen as one of the most expensive, but profitable industries at the same time. While the government spend a lot of money to provide citizens with free or half-free healthcare service. On the contrary, private hospitals enjoy high revenues due to increasing demand for high-quality healthcare. According to a recent survey, over 50% of patients in China choose private service. As a result, combined revenue of industry accounts for over $225 billion dollars. Of total amount, a large part comes from medicine and pharmaceutical sectors, which together her account for over 40% of total industry’s revenue. This creates incentives or doctors to prescribe more expensive, though not always more effective, medicines with the purpose of receiving some reward from pharmacy.

market analysis in China

To conclude, healthcare sector in China is currently requires restructuring and investment, which will help to improve quality of medical service. It requires proper regulations, which would allow foreign investors improve the industry and receive good revenue from it. Chinese government has done some steps to encourage investment in the industry and boost the growth of private hospitals. Compared to state healthcare centers, private hospitals are concerned with quality of service and seek to apply high quality European standards into it. This makes private hospitals more popular among Chinese patients.

For further reference:

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *