China's Hospital Sector Presents Major Opportunities through Rapid Growth, Reforms and Privatization
Private facilities to play a bigger role in China's evolving hospital sector, finds Transformation Health Team at Frost & Sullivan
SHANGHAI, Nov. 1, 2016 /PRNewswire/ -- Rapid urbanization, an aging population, and government initiatives to provide universal health coverage are compeling healthcare providers in China to rethink their business strategies. Hospitals must adopt the latest technologies, equipment and beds practices to improve the quality and efficiency of healthcare delivery, while privatization will drive the growth in high-end and complex clinical services.
2016 China Hospital Outlook is a new analysis from Frost & Sullivan's Advanced Medical Technologies Growth Partnership Service program, which includes topics such as diagnostics and monitoring technologies, high-impact interventional and therapeutic technologies care, and healthcare business services transformation.
"The China hospital ecosystem is divided into two parts with public hospitals striving for increased efficiency in service and care, while private hospitals are growing their capabilities, expanding their scale and skills," said Transformational Health Research Analyst Goh Bian Chiat.
Stakeholders should focus their strategies on the development of China's Western rural areas, where new growth opportunities exist for:
- Emergence of value-based services
- Demand for price-sensitive value products
- The development of hospital infrastructure
- Emergence of outsourcing services
- Emergence of managed services
Market leaders include Concord Medical Services spearheading cancer treatment in China, Phoenix Healthcare Group's Invest-Operate-Transfer business model, Aier Eye Hospital Group's aggressive plan to expand to over 200 facilities by 2020, and Harmonicare Medical Holding's diversification into in-vitro and neo-natal ICU services.
"Several reform policies are reshaping the hospital sector, like eliminating price mark-ups on the procurement costs of drugs in public hospitals to reduce their reliance on drug revenues, permitting physicians to practice at multiple sites, and allowing public patient treatment in private hospitals," noted Goh. "These measures, together with the adoption of the latest technologies and best practices, are driving the transformation of the Chinese hospital sector."
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2016 China Hospital Outlook
P827-54
Contact:
Julie Zheng
Corporate Communication – Greater China
P: +852 2191 5788
M: +852 6877 5511
E: julie.zheng@frost.com
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