The future looks bright for China in terms of healthcare reforms according to this summer’s report from McKinsey & Company. The report outlines three themes in the reforms:
1) Continuation of economic and demographic trends in China
2) Further healthcare reforms to follow
3) Certain policies articulated in the government’s 12th Five Year Plans.
McKinsey also outlined 8 principles that are essential to long-term success for multinationals in China.
China’s reforms will continue to be fueled by current economic and demographic trends such as continued urbanization, increase burden from non-communicable disease, the expansion of the economy overall, income growth effects, and a new focus on health care as a strategic reform. Increase coverage in insurance will also provide leverage for individual access to healthcare, and people with under-diagnosed diseases (cancer, depression) will be more likely to seek treatment.
China’s healthcare reforms began in 2009 and has had unprecedentedly impressive progress. Of course, China is only at the beginning stages of its health care reform and has a long way to go in terms of public hospital reforms, rural healthcare access, and mismatched progress between provinces, rural/urban areas, and West-coast/Central China. Most policy and political experts agree, now that central government has a wide reach in terms of insurance coverage, the next step is for China to focus on the quality of provisions.