As China is aging fast, the nation’s healthcare spending is projected to grow from $357 billion in 2011 to $1 trillion in 2020. China’s government insurance programs have extended their coverage to more than 95 percent of the population, though the coverage remains basic, fragmented and limited. For China to grow into a middle-income nation by 2020, healthcare reform is flagged up as a top priority.
According to McKinsey research, " across key categories, from pharmaceuticals to medical products and consumer health, China remains one of the world’s most attractive markets, and is by far the fastest-growing of all the large emerging markets. It is not surprising that multinationals are flocking to take advantage of the opportunities. For several leading pharmacos, such as Bayer HealthCare and Novo Nordisk, China ranks among the top three markets in total revenue contribution".
But because of the relatively low base to start from and the immense complexity of delivering better healthcare to 1.3 billion people in often vastly differnt economic, social, and locational circumstances, longterm success for all participants is fraught with trap doors. The McKinsey review delves into the various complexities and suggests what companies should do to stay ahead of the game over the next decade.
Download McKinsey & Co - Healthcare in China - Entering uncharted waters - September 2012
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