Only a few years ago, Chinese healthcare was near to collapse. It was a low-quality system in comparison with one of the best healthcare systems in the world. The flaws in healthcare lead rich Chinese people to leave the country to get better and effective treatment facilities abroad. But China, now the second-largest economy of the world is struggling to launch the world’s most affordable and effective healthcare system for its citizens.
It is all set to be a place where patients are diagnosed correctly; one time and the treatment facilities are faster and cheaper. Also, it would ensure the availability of the latest medicines and other services better than anywhere else in the world.
Pouring billions into the public health sector
China has a huge growing pressure from its middle-class population. Majorly, this social group is the new healthcare system ‘s prime focus. The first-world health facilities will be available at a fraction of the price that big countries like USA pay.
To reach this level, China is doubling the health fund towards public hospitals in the last five years. The approximate amount now given to public health is nearly $38 billion. Even this is not enough for the Chinese government and it is striving to make it $2.3 trillion by the end of 2030. It is more than twice its size right now.
The control of this trillion-dollar set up will be the most difficult thing. Beijing desires all big international pharmaceutical companies to cooperate and lower their prices to get access to the Chinese market. Being a highly populated country China has a vast patient pool. Access to the Chinese market will generate huge revenue for pharmaceuticals even if they lower their prices.
Surprisingly, some big names in pharmaceuticals such as Pfizer and Roche settled to reduce their price uo to 70%.
This is shocking news for the rest of the world. Its outcome will affect not just the Chinese patients but the overall future of the healthcare industry in all major countries.
Not to ignore that China is even following some of the US health metrics to meet their patient to the medical facility ratio. Putting billions of dollars in public health units and developing the medicinal system is no doubt the biggest turn over China in the health sector.
The trillion-dollar set up will face bigger challenges
On the other side, China doesn’t want to pay a hefty amount for all these facilities. It may affect the country’s medical insurance fund in a negative way. so to pay for these facilities without adding extra burden on the national budget, China wants cooperation from global pharmaceutical companies.
It requires them to drop prices drastically in return for getting open access to Chinese markets. If this plan goes as proposed, it means the same medicines and treatment in China will be up to 70% cheaper than in the USA. For now, the price of generic medicines is cut to an average of 52% in the Chinese bulk purchase plan.
Whole this new plan is alluring for all but this re-making of the healthcare system is extremely challenging. Not to mention it is set up in the world’s most populous country so it won’t come easy. The patient ratio in China for chronic diseases to common problems is multiple times more than any other country. So any positive or negative effect applies to a huge number of patients. It means all these patients and their health is at risk with this world’s most affordable and effective healthcare system.