Development creates new health challenges in China

Subject

Healthcare in China.

Significance

In less than two decades China has expanded public health insurance coverage to 95% of the population from 10%, halved the share of medical expenses borne by individuals and more than doubled the availability of hospital beds to a level that exceeds the United States and United Kingdom. However, new challenges now loom.

Impacts

• New fiscal arrangements may be required to address the budgetary pressure from healthcare.
• The heavy budgetary burden of meeting China’s healthcare needs will drive the expansion of the private sector to provide healthcare.
• For employers, private healthcare is an attractive bonus that promises to attract employees.
• Strong growth of China’s healthcare market offers investment opportunities for foreign companies.
• Weaknesses in the domestic healthcare system will lead Chinese nationals to seek treatment overseas.