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Massive expansion in private hospitals in China, but challenges remain

 23-Jan-14, Global Growth Markets analyst view

The number of private hospitals in China has increased by more than 80% over the past five years, to more than 10,000. Private hospitals provide more choice to patients, however the majority operate outside insurance schemes, which means the cost to the patient is higher.

Another key issue is that of medical talent. Doctors in China's government-funded system are classed as full-time workers and are therefore seldom allowed to double-up in the private system, and in many cases enjoy higher pensions than their private sector counterparts.

Despite these drawbacks, as wealth creation and healthcare reform continue apace, the private sector will continue to expand. While equipment prices may currently be under more pressure in private sector buying than in public hospital tenders, the gap will narrow over time, and patient monitor makers which have established a strong installed base with private hospital groups early on will benefit into the future.

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