Healthcare in China

Economy – Melanie Morgan

Healthcare Economics – Rashad Abdul-Salaam

Healthcare Policy – Nikki Giwa-Layeni

Healthcare Challenges – Elizabeth Steffen

Future Strategy – Sun C. Lee

Discussion Topics

China’s Healthcare Economics

By Rashad Abdul-Salaam

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?

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

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

Yip W , Hsiao W C Health Aff 2008;27:460-468

©2008 by Project HOPE - The People-to-People Health Foundation, Inc.

Healthcare Spending

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

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

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

Diabetes

China: 9.7%

USA: 11.1%

China: 2.5%

USA: 6.8%

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

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)

Cancer2002 Statistics

CA Cancer J Clin 2005; 55:74-108

• 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