overview of the healthcare market in china · overview of the healthcare market in china ®...
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April, 2009
Overview of the Healthcare Market in China
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The Chinese Government released its new Healthcare Reform Plan in April, 2009, setting
groundwork for new opportunities• Make healthcare services more
accessible and affordable, especially in rural areas
• Control drug costs• Build many county and township
medical centers• Build more community clinics in
cities• Privatize some Level 2 and Level 3
hospitals
• Medical Technology Sales• Healthcare Services
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Overall Objective
Actions by the Government
New Opportunities
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China is an increasingly important healthcare market with tremendous opportunity for growth
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• Population: 1.3 billion• 44% urban; 56% rural• Over age 65: 8.1% (was 4.9% in 1982)
• Healthcare Expenditures: USD 157 billion• Medical Equipment: USD 7 billion
• Healthcare Market CAGR last 5 years: 17%• Medical Equipment CAGR last 5 years: 25%
• Number of hospitals: ~20,000• Number of beds: 3.7 million
• Government has been reforming the healthcare system since the 1990s
• Movement from government subsidy to social welfare and commercial insurance payers
• Large potential as economy develops, particularly in rural areas
• Aging society contributes to increasing healthcare needs
• Healthcare Expenditures: 4.5% of GDP compared to 15.3% in the US and 7-9% in Japan and Europe
• China is positioned to become the second largest healthcare market after the US by 2020
• Public hospitals in major cities are well equipped
• Healthcare resources are still scarce outside of major cities
• Private and foreign healthcare organizations are encouraged
• Economic stimulus includes rural healthcare infrastructure buildup
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China’s national healthcare expenditure is 4.5% of GDP and growing
4 Source: CIA, OECD 2005, MHLW 2005, Ministry of Health P.R.O.C. 2008
Europe: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
National Healthcare Expenditure - % of GDP
5% 10% 15% 20%
4.5%
7.1%
8.7%
15.3%
China
Japan
Europe
United States
$272.6B
$1,791.9B
$1,286.7B
$157B
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China’s medical technology market is expanding 25 - 30% per year
5 Source: Ministry of Health, P.R.O.C. 2008
China Medical Technology Expenditures 2003 - 2007
US$2,000M
US$4,000M
US$6,000M
US$8,000M
US$2,257MUS$3,049M
US$3,964M
US$5,346M
US$7,026M
20032004
20052006
2007
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China represents 3% of the current total worldwide medical technology market
6 Source: MHLW 2006, Eucomed 2005, Ministry of Health P.R.O.C. 2008, Junicon Estimates
Europe: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
42%
10%
34%
3%10%
$23.4B
$24.3B
$98.8B
$79.1B
Worldwide Medical Technology Company Sales = $232.6B
$7B
USJapanEuropeChinaROW
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Designations of China’s 20,000 Hospitals
7 Source: Ministry of Health P.R.O.C.
Level (#) and Grade (A, B, C) # of Hospitals %
Level 3 (Any bedsize, Comprehensive, National) Total 1,182 6%
3A Subtotal 704 4%
3B Subtotal 348 2%
3C Subtotal 130 1%
Level 2 (100+ beds, Community 100,000+) Total 6,608 33%
2A Subtotal 4,260 21%
2B Subtotal 1,650 8%
2C Subtotal 698 4%
Level 1 (20+ beds, Community < 100,000) Total 4,687 24%
Without Level 7,370 37%
Total 19,847 100%
Bedsize # of Hospitals
< 100 12,071
100 - 199 3,700
200 - 499 2,868
500 - 799 814
800+ 394
Total 19,847
(100+ Beds) 7,776
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Healthcare companies need to know where their targets are in China
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2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000
19,847
7,870
4,927
3,533
2,820
1,615
1,435
846
China
Japan
US
France
Germany
Italy
UK
Spain
Source: MHLW, AHA, Walnut HER, Ministry of Health P.R.O.C.
Number of Hospitals in Key Countries
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Junicon delivers healthcare market research and consulting in major worldwide markets, including China
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Junicon International Holdings, Inc.
Junicon K.K.Tokyo, Japan
Juniper Consulting Group, Inc.
San Francisco, USA
Junicon Europe S.L.Barcelona, Spain
• Internal capabilities in 8 languages• Extensive network beyond our own physical locations• Please visit us on the web at www.junicon.net• For more information or a quote for China research, please
email Rob Claar at [email protected] or Sabrina Tam at [email protected]
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Thank you for your interest in Junicon
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Management team works collaboratively to deliver maximum client value
Premium and principled client
services
Junicon believes in making
a reasonable profit as long as benefits to the client
significantly outweigh our costs to deliver
5% annual profit to improve opportunities for children around the world
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We deliver value by transforming client and market information into actionable insight
Vision
• To be the premier global business-to-business marketing research-based consulting services partner to our valued clients
Mission
• Deliver client value by enhancing our clients’ ability to excel in worldwide markets
• Create an environment for employees to fully realize their potential
• Continuously improve internal processes through effective collaboration and training
• Create shareholder value• Dedicate a portion of our resources and expertise to improving
opportunities for children around the world
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Junicon enables clients to identify and maximize opportunities in global healthcare markets
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Ongoing
Support
Pre-Launch
& Re-Launch Strategy
New Business
Feasibility & Development
Portfolio and
Franchise Strategy
•!Market research
•!Strategy development
•!Ongoing support
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Our programs are customized to meet the needs of the client at every stage
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Customized
Program Design
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Since 1992, Junicon has developed expertise in a wide range of medical technology markets
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Cath Lab
ICU OR Specialty Clinic / Surgery Center
Central Processing
Hospital Wards /
Recovery
Long Term Care / Home Health
Medical Imaging
Diagnostic Laboratory
Disposable Equipment
Capital Equipment
Implantable Devices
Electronic Drug Delivery
Wound Closure, Drainage, Care
Vascular Access (CVCs, PICCS, PACs, Ports)
Surgical Tools
Patient Monitoring Systems Ventilators
Stents
(Coronary and
Peripheral)
Vena Cava Filters
MRI
Angiography
Kits
Balloons
Guidewires
Tension-free meshes and slings
Mitral /
Aortic valves
Sterilization Systems
Wound Care Infusion Equipment
Dialysis Equipment
Syringes
Tubes, Catheters
Pacemakers and ICDs Orthopedic Implants
Intra-Ocular Lenses
Endoscopes Microbiology
Analyzers
Point-of-Care Diagnostics
Clinical Chemistry
Analyzers
Ultrasound
X-Ray
Automatic Endoscope Reprocessors
Trays
Labware
Reagents
Disinfectants
Test Strips
Glucose Monitors
Glucose Testing Strips
Defibriillators
Defibriillators
Ophthalmic Surgery Equip.
Dental Implants
Radiotherapy Equipment
Vascular
Radiology/CT
CT/PET
Medication Management and Patient IT Systems
Lenses Invasive and Non-Invasive Monitor Probes
Anesthesia Delivery Telemetry &
Low-end patient
monitors
Medical Furniture
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