Investing in healthcare in china

At least when they get sick, almost all Chinese citizens have health insurance. And diarrheal diseases dropped from the 20th highest number of deaths per , in to the 78th highest cause of deaths in , according to the Lancet study on causes of death and disease. This is clearly evident in China, where the sector is increasingly driven by an aging population, changing consumer habits, digitalization, and greater private sector offerings. Susan Brink. We adhere to a strict Privacy Policy governing the handling of your information. Chan School of Public Health. China-Russia Internet Media Forum.

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China is desperate to draw foreign investment into its healthcare sector in general, and hospitals in particular. Some of this difficulty has nothing to do with investing specifically in Chinese hospitals, and everything to do with how rules and regulations that allow more foreign investment in any category are interpreted by local authorities. The Chinese government understands these pressures all too well. The reform and opening process China is engaged with in its hospital sector is not unique. But thus far, foreign approvals have been few and far between, and deal flow has been slower than many anticipated. Many assumed the process by which the hospital sector opened to foreign investment would follow a similar trajectory as other industries that were previously closed, but then opened to foreign direct investment FDI. This group also happens to be the demographic cohort the Chinese government would most like to see the private sector play a more significant role helping provide healthcare for.

China is desperate to draw foreign investment into its healthcare sector in general, and hospitals in particular. Some of this difficulty has nothing to do with investing specifically in Chinese hospitals, and everything to do with how rules and regulations that allow more foreign investment in any category are interpreted by local authorities.

The Chinese government understands these pressures all too. The reform and opening process China is engaged with in its hospital sector is not unique. But thus far, foreign approvals have been few and far between, and deal flow has been slower than many anticipated.

Many assumed the process by which the hospital sector opened to foreign investment would follow a similar trajectory as other industries that were previously closed, but then opened to foreign direct investment FDI. This group also happens to be the demographic cohort the Chinese government would most like to see the private sector play a more significant role helping provide healthcare.

Some municipalities are eager to see foreign investment, while others may be more concerned about political risk. As such, the government is moving deliberately and slowly, to make sure that it does not destabilize the public hospital system through a series of reforms that, while good in the short-term for private operators and investors, might cause mid-term problems for the government.

During a recent conference in Shanghai, I moderated a panel and asked my fellow speakers if there was any analog industry in China that was as politically sensitive that had ultimately gone through a similar process of opening to foreign investment. But healthcare is even more of a touchy issue in China. For years, Chinese have absorbed terrible pollution, tainted food supplies, and contaminated water. They have done this with the knowledge that for many, the result will be cancer and cardiac disease; however, the price was one they were willing to pay.

The hope was that all of these costs would be offset with a growing and vibrant economy that, among other benefits, would foster a modern healthcare and pension. The painful reality is that China has three factors coming together that are likely to make it more difficult to fundamentally alter the quality of either healthcare outcomes or customer experience. Third, China is opening its healthcare economy to foreign investment relatively late in its economic liberalization and modernization.

Consequently, even though the government feels it needs to be very cautious in its approach, it has to address the chorus of voices from foreign operators who want to make investments more smoothly and quickly, alongside the frustrations of average Chinese who want more coverage and better choices. The stages have thus far roughly followed the sequence of what other previously restricted sectors have gone. What is different is the pace and timing.

Of all the sectors China has moved to open for overseas investment, its healthcare economy in general, and hospitals especially, may need to move more quickly than the authorities would like. Share to facebook Share to twitter Share to linkedin China is investing in healthcare in china to draw foreign investment into its healthcare sector in general, and hospitals in particular. Benjamin Shobert. Read More.

Right Track. And, says Murray, the government so far doesn’t seem to want to get involved investing in healthcare in china people’s personal decisions, like whether to smoke, drink or eat unhealthy foods. This field is for validation purposes and should be left unchanged. I am an individual investor I am a financial professional. Worldwide, diarrhea is the second leading cause of death among children under five — responsible for the deaths of more than 2, children every day, according to the Centers for Disease Control and Prevention. It’s working in that it has reduced prescriptions in hospitals,» she says. In inn, certain multinational firms like Charles River Laboratories have invested aggressively in Chinese biotech firms and are shifting towards localized production models. Don’t Tell Me!