Healthcare is a large and complex sector influenced by demographics, consumption, technology, and official policy.
Healthcare is a large and complex sector influenced by demographics, consumption, technology, and official policy. In China, the sector is increasingly driven by an aging population, changing consumer habits, digitalization, and greater private sector offerings. While healthcare in the US is the second largest sector by market capitalization, the Chinese healthcare ranks 8th. In 2018, the average spending in China is less than one tenth of the average spending in the US, suggesting that the sector is still early in its development.
Public hospitals are expected to hold a dominant role in China’s healthcare system, retaining a strong pool of talent and medical resources. But backed by institutional and industrial capital, private hospitals are realizing accelerating integration and market expansion. Chinese medical device manufacturers dominate the domestic market, but they deliver mostly low-tech and mid-range products. Chinese hospitals and healthcare providers prefer imported devices, especially when purchasing innovative and high-tech devices. Significant demand for foreign-made, high-end devices is also fueled by China’s aging population, and the Chinese government is pushing to improve the quality of care for the elderly.
Acadia has managed a number of projects within the healthcare industry across China, including establishing testing labs to assisting with China Food and Drug Administration approval applications. Our advisors and local experts design processes to help businesses become established and grow in this dynamic market.