Global Growth Markets whitepaper - China healthcare market opportunities, Nov-14
Global Growth Markets whitepaper: China private hospital sector opportunities
18
www.ggmkts.com [email protected] Asia Medical Tourism Congress presentation China’s private hospital sector opportunities 15-Nov-15, Guilin, China Pete Read, CEO UK +44 773 986 5080 Singapore +65 6632 3630
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Transcript of Global Growth Markets whitepaper: China private hospital sector opportunities
www.ggmkts.com [email protected]
Asia Medical Tourism Congress presentationChina’s private hospital sector opportunities15-Nov-15, Guilin, China
Pete Read, CEO
UK +44 773 986 5080Singapore +65 6632 3630
www.ggmkts.com
2Agenda
China’s private hospital sector15-Nov-15
1. The big picture2. Investment3. Some trends
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3
China’s private hospital sector15-Nov-15
The big picture
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4>10,000 private hospitals in China with 400+ opening each yearThe big picture
Source: GGM hospital demographics database; China MOH; NHFPC; China Hospital Association
China’s private hospital sector15-Nov-15
60%
40%
Number of hospitals in China
[19% increase]
[56% increase]
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5Most provinces still majority public sectorThe big picture
China’s private hospital sector15-Nov-15
PublicPrivate
Source: Global Growth Markets hospital demographics database; China MOH; NHFPC; China Hospital Association
Yunnan
Guizhou
Sichuan
Jiangsu
Beijing
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6Most private hospitals have <100 bedsThe big picture
China’s private hospital sector15-Nov-15
Private Public
Source: GGM hospital demographics database; China MOH; NHFPC; China Hospital Association
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76 in 10 private hospitals are specializedThe big picture
China’s private hospital sector15-Nov-15
Including Skin disease, ENT, Care centres, Cardio, Ethnic
minority, Children, Transferable diseases,
Occupational diseases and others
Private sector
60% of all specialized hospitals in China
Source: GGM hospital demographics database; China MOH; NHFPC; China Hospital Association
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8
China’s private hospital sector15-Nov-15
Investment
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9Reforms are bringing in foreign investmentInvestment
Source: GGM research
China’s private hospital sector15-Nov-15
US, UK, European and Asian groups now investing TCM only for HK, Macau and Taiwan investors100% ownership to be allowed in Beijing, Tianjin, Shanghai, Jiangsu, Fujian, Guangdong and HainanFirst wholly-owned foreign-owned hospital (Artemed) in 20142014 – “reducing restrictions on foreign ownership in medical JVs and collaborations”
FDI started in 2011 – in a limited wayAnnounced 2010
1. Strengthen public sector
2. More play to Market Forces
• Relieve the burden on public sector
• Close gap between East and West China
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10Multiple incentivesInvestment
Source: GGM research
China’s private hospital sector15-Nov-15
✔ Regulatory More foreign ownership – though takes time to trickle down to city/province
✔ Financial Wider investment sources Less upfront working capital; equipment leasingFree pricing for servicesReimbursement from public insurance
✔ Employment Looser contractual requirements for foreign doctors✔ Visibility Eg. UK visit by Vice Premier Liu Yandong Sep-15, encouraging
UK GPs and primary care clinic directors to go to China, train and set up clinics, aged care centres
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11But there are some hurdlesInvestment
Source: GGM research
China’s private hospital sector15-Nov-15
✖ Clinicians Public sector doctor restrictions on working in the private sector
✖ Expectations Unrealistic get-rich-quick attitude among local partners, trust issues on both sides
✖ Experience Private hospital group management expertise and experience not yet well developed
✖ Reimbursement Public health insurance coverage too shallow
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12Foreign hospital groups now investingInvestment
Source: www.ggmkts.com/insights
China’s private hospital sector15-Nov-15
Regular announcements of JVs, M&A, new-builds
Raffles Group, Shanghai
IHH, Chengdu
• Columbia (US)• IHG (UK)• IHH/Parkway (MY)• Optegra (UK)• Raffles (SG)• Ramsay (AU)• Sinophi (UK)…and more
Optegra New Vision Eye Clinic
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13
China’s private hospital sector15-Nov-15
Some trends
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14Private sector believes in Digital HealthSome trends
China’s private hospital sector15-Nov-15
Which aspects of digital health do you think are most likely to improve patient outcomes in China in the next 3-5 years?
Source: Global Growth Markets survey
% of respondents
China avg 48%APAC avg 23%
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15From cash pay to AlipaySome trends
China’s private hospital sector15-Nov-15
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16Towards PHR with data centresSome trends
China’s private hospital sector15-Nov-15
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17Demographics, wealth and lifestylesSome trends
China’s private hospital sector15-Nov-15
Source: Global Demographics
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Talk to us about how we can help you succeed in your chosen growth markets
Pete ReadCEOUnited [email protected]+44 773 986 5080
Morris [email protected]+65 6632 3630
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