On April 27, 2016, Yanzhong Huang discussed potential opportunities and challenges for China’s collaboration with the United States on healthcare in a testimony before the United States-China Economic and Security Commission. Here are six key thoughts:
1. China’s healthcare financing system relies on a disconnect between spending and demand; spending is a low percentage of the country’s gross domestic product when compared with its population.
2. The country hopes to increase care affordability and accessibility, especially in remote areas and for those in the lower social strata. China’s 13th Five-Year Plan implements universal health coverage, refines the healthcare financing mechanisms and encourages research and development for new drugs.
3. Interest in the Chinese market is high from U.S. pharmaceutical companies, hospital groups and insurance companies due to the increase in outpatient visits, hospitalizations and medical spending due to noncommunicable diseases.The country also has an increasing older population and eliminating the one-child policy is expected to increase the demand for healthcare and institution-based senior care.
4. China’s urbanization is expected to drive private hospital growth and provide a member base for commercial health insurers. The growing use of mobile health technology is expected to be popular in rural areas as well.
5. Foreign-owned healthcare facilities account for half of all healthcare facilities in China but provide 10 percent of inpatient and outpatient care; state-owned public hospital system have a monopoly on providing care, which is a challenge for foreign investors. There are also some “high-end medical services” that aren’t covered by the country’s health insurance and require government approval.
6. China restricts foreign entities that hinder public-private partnerships on drug development. But there is movement toward future partnerships after successful collaborations between Chinese laboratories and HHS as well as the Gates Foundation.
The relationship between China and the U.S. could change when President-elect Donald Trump takes office in 2017; Mr. Trump questioned the longstanding “One China” policy during an interview with Fox News on Sunday, according to The Wall Street Journal.
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