China is the world’s most populous nation with 1.4 billion people. It is home to a rapidly aging population and in recent years, the Chinese government has invested heavily in the nation’s healthcare industry. With the increasing emphasis placed on healthcare in the world’s most populous country, this article will provide an overview of the state of the Chinese healthcare industry in 2020.

Current Healthcare Spending in China

China spent nearly US$764 billion on healthcare in 2018, up from US$670 billion in 2017. In 2018, the Chinese government accounted for 28% of total healthcare spending, while private out-of-pocket spending accounted for 35%. By comparison, in the United States, private out-of-pocket spending made up 40% of total healthcare spending, while government spending accounted for 29%.

Recently, the Chinese government has sought to shift the burden of healthcare costs from individuals to the government. In 2019, the government passed legislation to expand insurance coverage and reduce out-of-pocket spending for medical services. In addition, criticism of public hospitals for overprioritizing high-paying customers has led the Chinese government to promote primary and preventive care to reduce overall medical costs.

Healthcare System in China

The Chinese healthcare system is a two-tier system. On the first tier is government-run public healthcare, which is available to all citizens. Public hospitals provide primary care and provide access to specialist care through a referral system.

On the second tier is the private healthcare system, which includes privately-run hospitals and clinics, as well as foreign-run hospitals. Private healthcare facilities often have better facilities and more sophisticated medical technology, but services can be expensive and out of reach for many.

Challenges Facing China’s Healthcare System

China’s healthcare system is faced with several challenges. Among these are a lack of qualified medical professionals, an aging population, an inadequate public health system, unequal access to healthcare services, and a lack of health insurance.

  1. Lack of Qualified Medical Professionals

China has a shortage of qualified doctors and nurses, especially in rural and underserved areas. The shortage is exacerbated by the fact that those who do practice in rural areas often receive low pay compared to those who work in urban areas.

  1. Aging Population

China’s population is aging rapidly. In 2016, 13.3% of the population was over 65. A recent report by the World Health Organization predicts that this figure will more than double to 28% by 2050.

  1. Inadequate Public Health System

Public hospitals are inadequate and often overcrowded. They are also plagued by corruption, and pharmaceutical companies have accused them of overpriced drugs and bribes.

  1. Unequal Access to Healthcare Services

Access to healthcare services is unequal in China, especially between urban and rural areas. This is due largely to the uneven distribution of hospitals, medical personnel and healthcare resources.

  1. Lack of Health Insurance

Although some Chinese citizens have access to government health insurance, most do not, and those who do often face high out-of-pocket costs.

Innovations in China’s Healthcare Industry

The Chinese government has recently taken steps to address the challenges facing its healthcare industry.

  1. Enhancing Healthcare Access

The Chinese government has sought to improve access to healthcare services through the establishment of local health centers and expanded rural health coverage. In addition, the number of primary care doctors in China has been steadily increasing, and the government has sought to attract more doctors to serve in rural areas.

  1. Promoting Telemedicine

Telemedicine has become increasingly popular in China, with many healthcare providers offering online services. For example, Qihoo 360’s HealthLink platform offers online doctor consultations, online prescription refills, online lab tests, and video consultations with doctors and healthcare professionals.

  1. Investing in Artificial Intelligence

AI technology is increasingly being used in China’s healthcare industry. AI-based medical applications are being developed for medical imaging and data analysis, as well as for drug research and development.

  1. Expanding Health Insurance Coverage

The Chinese government has recently expanded health insurance coverage to include more people, and has implemented a system that allows individual and corporate taxpayers to deduct healthcare expenses from their taxes.

The Chinese healthcare industry is facing many challenges, but the Chinese government is taking steps to improve the industry. Through initiatives such as expanding healthcare access, promoting telemedicine, investing in AI technology, and expanding health insurance coverage, the Chinese government is making strides in improving the quality and access of healthcare services in the world’s most populous nation.