Why China's Healthcare Insurance Progressions Matter

China’s central government recently announced that public healthcare insurance will now include certain services in China’s private hospitals. China will need to expand the amount of reimbursement available for specific healthcare in order to cultivate a private health care sector.

There are two important signals from the Chinese government on its willingness to accommodate private, for-profit entities into the country’s healthcare system. The first is China’s Foreign Direct Investment (FDI) revisions that now allows for 100% or Wholly Foreign Owned Enterprises (WFOE). The second critical reform is that private hospitals and clinics now must accommodate China’s public healthcare insurance plan.

The last 2 years of reforms are not surprises, but rather an implied acknowledgment of China’s desperate need for foreign support. Now that FDI is no longer restricted, joint venture partnerships in healthcare will be able to adequately make key decisions as well as access the knowledge and training capacity that western patterns already have. Private healthcare service providers will be able to supplement the country’s fragmented and poorly designed healthcare delivery system, which means major opportunity and growth for health care companies around the globe.

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Alison Killian is a recent graduate of Grove City College who majored in Business Management and minored in Biology Studies. She is a contributor to Medical Groups and passionate about all facets of healthcare. She plans on continuing work in the healthcare field especially in management. She is very interested in healthcare innovation and finding ways to improve the current system. She hopes to go back to school in a few years to earn a degree in medicine.