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Healthcare in China
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Economy – Melanie Morgan
Healthcare Economics – Rashad Abdul-Salaam
Healthcare Policy – Nikki Giwa-Layeni
Healthcare Challenges – Elizabeth Steffen
Future Strategy – Sun C. Lee
Discussion Topics
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China’s Healthcare Economics
By Rashad Abdul-Salaam
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Central TopicsEconomic
Demographics
• How Much Does China Have?
Resource Allocation
• Where is Money
Spent/What Does it Buy?
Health Statistics
• What is the
Chinese Healthcare ROI?
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Source: http://www.oecd.org/dataoecd/5/34/43800977.pdf
US Norway
LuxemFrance
SwitzGerm
AustCan
OECD ave
China
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Healthcare Expenditure per Capita (in US$), 2007
Public Private
$7,290
$4,763$4,162
$3,601$3,601
$3,588$3,763
$3,895
$2,984
$148 (2008)
Healthcare Spending
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0
5
10
15
20
25
7.6
9.510.57
19.47
15.28
GDPNHE
The Growth of NHE and GDP( 1978-2004)
Perc
enta
geHealthcare Spending
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Yip W , Hsiao W C Health Aff 2008;27:460-468
©2008 by Project HOPE - The People-to-People Health Foundation, Inc.
Healthcare Spending
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Hospitals Physicians Nurses and Midwives
Hospital beds
13,119 1,862,630 1,259,240 30/10,000
5,010 793,648 2,927,000 31/10,000
World Health Organization 2009
People and Infrastructure
China
US
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Pharmaceuticals
15%
85%
Devel'd Nations
Pharma Other
% Total Health Expenditure (THE) on Pharmaceuticals
Source: OECD, 2007 and China MoH, 2007
40%60%
China
Pharma Other
Total Pharma
Expenditure as %GDP
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2005 2010 2015 (est.)
18
100
200
Obese Adults in millions
Japan
Korea
China
France
Germany
Australia
UK
New Zealand
Mexico
US
0% 5% 10% 15% 20% 25% 30% 35% 40%
% Population Obese, 2009
Obesity
OECD 2009 Health Data Report
30x
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Diabetes
China: 9.7%
USA: 11.1%
China: 2.5%
USA: 6.8%
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2003 2004 2005 2006 2007 2008 2009 20100.00
5.00
10.00
15.00
20.00
25.00
30.00
Sing (1)
Japan (4)
Germ (14)
Switz (15)
UK (31)
US (44)
China (117)
Infant Mortality
Source: CIA World Factbook
Infant Mortality (Deaths per 1,000 Births), 2010
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Macau (1) Japan (3) Switz (11) Germany (32) UK (36) US (48) China (N/A)68
70
72
74
76
78
80
82
84
86
84.36
82.12
80.85
79.26 79.0178.11
73.47
Age
2009 Statistics
Life Expectancy
Source: CIA World Factbook
Countries (rank of 100 total)
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Cancer2002 Statistics
CA Cancer J Clin 2005; 55:74-108
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• Take-home Message:– China’s healthcare growth outpaces GDP growth
by almost 10% annually– Fee-for-service incentives warp healthcare cost-
structure, driving individual spending– China ranks very low in a number of health
statistics compared to other industrialized nations– China would benefit from a change in fee-
structure, and investment in public health