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Investment in Private and Specialty Care Clinics Drives Growth
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China is one of the fastest growing healthcare markets in the world. Traditionally, healthcare services have been dominated by the public sector; however, 2014 onward, the trend reversed with greater private sector participation. China still faces a number of challenges: unequal distribution of healthcare resources across the country; lack of an effective primary care system; expensive healthcare; poor conditions of healthcare facilities; and poor service. Urbanization, environmental pollution, and wealth disparities have led to widespread health problems, including a significant rise in chronic diseases. In response to these rapidly emerging challenges, China has upgraded its healthcare services and expanded its health expenditures. In addition, the Chinese Government has launched a series of healthcare reforms which includes health insurance reforms, primary care reforms, hospital reforms, medications and public health. To boost the private hospital industry, the government has introduced various policies and reform measures to encourage private and foreign ownership of hospitals and improve the medical talent pool in the private sector.The main source of revenue for clinical laboratory testing market in China is generated by hospital laboratories. Tests from hospitals’ inpatients and outpatients will continue to be the largest contributor of revenue and volume of clinical laboratory testing during the forecast period. China represents high growth opportunity, as clinical laboratories are undergoing radical changes in adopting high-end technology and automation. Independent labs will witness tremendous growth as a result of the increased diagnostic test consumption and the outsourcing of complicated pathological tests. China is seeing a rapid growth in private hospital infrastructure, which is being driven in order to reduce the over-utilization and over-reliance of Chinese citizens on public hospital system. The government had introduced several key reforms that are aimed at shaping the clinical diagnostics industry and to support the growth and investment in the private sector. The government is also upgrading the medical devices of hospitals and purchasing essential medical equipment for rural hospitals.
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