Page 336 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
in China in 2015, while in 2013 there were 39 beds per Medical pilot zones
1,000 elderly in the US and 53 in Germany at the same
time. As there are fewer children now to take care of In the coming two to three years, China’s healthcare
their parents, China will need to reevaluate its policies. sector will probably evolve into a pillar industry of national
It is striking that an estimated 23 percent of the elderly economic and social development, contributing greatly
in China cannot take care of themselves, while in 2010, to GDP growth. Chinese health leaders, however, are
only 43 percent of elderly males and 13 percent of facing technological disruption, new kinds of competition,
elderly females received any financial support from a shifting regulation, and political pressure. This is the same
pension (CSIS). scene playing out in many healthcare markets around
the world. The status quo of rising demand for health
Thus, China’s focus is shifting from nursing homes to services and escalating costs of care may be profitable for
more community and at-home services. More seniors some now, but it is unsustainable. And the maelstrom is
will be able to receive nursing care - not only at elderly finally triggering a consolidation and transformation of
care facilities but also within communities and even at the industry. The Healthy China 2030 blueprint released
home in the future. In terms of easing the economic by Chinese authorities in 2016, projects that the Chinese
burden on nursing services, the National Health healthcare market is expected to reach 16 trillion yuan
Commission has been paying more attention to long- (US$2.3 trillion) by 2030 (Liu, Fujifilm).
term care insurance.The insurance is designed to provide
economic assistance to those who lose the ability to tend Medical pilot zones and specialized hospitals are
to their daily needs as they grow old. In 2016, 15 pilot becoming more essential. China Stem Cell Group Co.,
cities in China were designated to pilot long-term care Ltd, a Shanghai-based company, officially opened
insurance, including Shanghai; Guangzhou, Guangdong its affiliated stem cell hospital in Boao Lecheng
province; and Chengdu, Sichuan province. The nursing International Medical Tourism Pilot Zone in Hainan in
profession in China is becoming much stronger in terms 2018. The hospital, the only one in the sector in China
of quantity and quality. The number of registered nurses and equipped with a hundred 100 pre-clean laminar
in 2017 rose by 126.5 percent over the 1.68 million in air flow rooms for patients, will be able to handle
2008, and 67 percent of them have college or higher 1,000 blood stem cell transplantations annually. The
degrees. However, a huge gap between supply and hospital will help effectively reduce the shortage of
demand remains (Jiang). transplantation resources in the country. Hainan Boao
Lecheng International Medical Tourism Pilot Zone, the
China’s 13th Five-Year Plan reflects a recognition that only one of its kind in China, enjoys nine preferential
the government alone cannot meet the increased demand policies granted by the State Council ever since 2013,
for higher quality health care and senior care services and such as carrying out stem cell clinical applications
products. As such, the Plan promotes a “Healthy China” without central government permission. Boao Lecheng
movement, which aims to establish an integrated health pilot zone is a demonstration project for the nation’s
care and senior care system and encourages private healthcare reform that covers an area of 20 square
investment in the health care and senior care sector. kilometers. He Pengfei, deputy director of the zone’s
Foreign capital participation in this sector is viewed as a administration office, said 27 medical projects have
key lever to achieving international quality standards and been completed or are under construction in the pilot
practices. This means there are increasing opportunities zone, and another 38 projects have passed medical
for non-domestic health care providers. Foreign senior technology appraisals. The administration office has
care operators, which are now permitted to set up wholly- talked with developers of 101 high-end medical and
foreign owned enterprises (WFOE) in China, will enjoy healthcare projects. All projects in the pilot zone are
various favorable policies. Tax incentives, administrative expected to be completed in about five years. By then,
fee exemptions and special deductions and waivers, the zone is estimated to receive 5 million healthcare
which were once provided only to Chinese-owned, senior tourists per year (Ma and Liu).
care facilities are now being offered to those that are
foreign-owned. Given the acute need to rapidly improve Technology and Big Data
the availability and quality of health care and senior care
facilities, increasing foreign investment in these sectors is Given the size of the country, promoting healthy
expected for many years (Dai et al). lifestyles and the delivery of healthcare services in rural
336
in China in 2015, while in 2013 there were 39 beds per Medical pilot zones
1,000 elderly in the US and 53 in Germany at the same
time. As there are fewer children now to take care of In the coming two to three years, China’s healthcare
their parents, China will need to reevaluate its policies. sector will probably evolve into a pillar industry of national
It is striking that an estimated 23 percent of the elderly economic and social development, contributing greatly
in China cannot take care of themselves, while in 2010, to GDP growth. Chinese health leaders, however, are
only 43 percent of elderly males and 13 percent of facing technological disruption, new kinds of competition,
elderly females received any financial support from a shifting regulation, and political pressure. This is the same
pension (CSIS). scene playing out in many healthcare markets around
the world. The status quo of rising demand for health
Thus, China’s focus is shifting from nursing homes to services and escalating costs of care may be profitable for
more community and at-home services. More seniors some now, but it is unsustainable. And the maelstrom is
will be able to receive nursing care - not only at elderly finally triggering a consolidation and transformation of
care facilities but also within communities and even at the industry. The Healthy China 2030 blueprint released
home in the future. In terms of easing the economic by Chinese authorities in 2016, projects that the Chinese
burden on nursing services, the National Health healthcare market is expected to reach 16 trillion yuan
Commission has been paying more attention to long- (US$2.3 trillion) by 2030 (Liu, Fujifilm).
term care insurance.The insurance is designed to provide
economic assistance to those who lose the ability to tend Medical pilot zones and specialized hospitals are
to their daily needs as they grow old. In 2016, 15 pilot becoming more essential. China Stem Cell Group Co.,
cities in China were designated to pilot long-term care Ltd, a Shanghai-based company, officially opened
insurance, including Shanghai; Guangzhou, Guangdong its affiliated stem cell hospital in Boao Lecheng
province; and Chengdu, Sichuan province. The nursing International Medical Tourism Pilot Zone in Hainan in
profession in China is becoming much stronger in terms 2018. The hospital, the only one in the sector in China
of quantity and quality. The number of registered nurses and equipped with a hundred 100 pre-clean laminar
in 2017 rose by 126.5 percent over the 1.68 million in air flow rooms for patients, will be able to handle
2008, and 67 percent of them have college or higher 1,000 blood stem cell transplantations annually. The
degrees. However, a huge gap between supply and hospital will help effectively reduce the shortage of
demand remains (Jiang). transplantation resources in the country. Hainan Boao
Lecheng International Medical Tourism Pilot Zone, the
China’s 13th Five-Year Plan reflects a recognition that only one of its kind in China, enjoys nine preferential
the government alone cannot meet the increased demand policies granted by the State Council ever since 2013,
for higher quality health care and senior care services and such as carrying out stem cell clinical applications
products. As such, the Plan promotes a “Healthy China” without central government permission. Boao Lecheng
movement, which aims to establish an integrated health pilot zone is a demonstration project for the nation’s
care and senior care system and encourages private healthcare reform that covers an area of 20 square
investment in the health care and senior care sector. kilometers. He Pengfei, deputy director of the zone’s
Foreign capital participation in this sector is viewed as a administration office, said 27 medical projects have
key lever to achieving international quality standards and been completed or are under construction in the pilot
practices. This means there are increasing opportunities zone, and another 38 projects have passed medical
for non-domestic health care providers. Foreign senior technology appraisals. The administration office has
care operators, which are now permitted to set up wholly- talked with developers of 101 high-end medical and
foreign owned enterprises (WFOE) in China, will enjoy healthcare projects. All projects in the pilot zone are
various favorable policies. Tax incentives, administrative expected to be completed in about five years. By then,
fee exemptions and special deductions and waivers, the zone is estimated to receive 5 million healthcare
which were once provided only to Chinese-owned, senior tourists per year (Ma and Liu).
care facilities are now being offered to those that are
foreign-owned. Given the acute need to rapidly improve Technology and Big Data
the availability and quality of health care and senior care
facilities, increasing foreign investment in these sectors is Given the size of the country, promoting healthy
expected for many years (Dai et al). lifestyles and the delivery of healthcare services in rural
336
