China's healthcare sector is undergoing rapid growth and transformation. The Chinese government has identified healthcare as a strategic industry and is undertaking reforms through the 12th Five-Year Plan to strengthen public health infrastructure, expand insurance coverage, and support sectors like traditional Chinese medicine. China will increasingly contribute to global health spending as obesity and diseases like diabetes rise domestically. The growth of connected devices and digital health also presents opportunities for remote monitoring and transforming how healthcare is delivered in China.

1. 1
Rotman Study Tour 2014
China Healthcare Overview

2. The opinions expressed
are my own and do not
represent the view of
others in any way

3. “The greatest wealth is health” – Virgil 3

4. Global health spending is dominated by developed western markets.
China will increasingly become a share of global health spending.
Background: Health Spending Growth
4

5. 5
China Health Facts

6. Obesity rate is
rising rapidly— 30-
50% annually
About 15% of
adults—or 200
million people—are
classified as
overweight
About 1/10
adults have
diabetes
1/3 cigarettes
consumed
worldwide
6

7. Total health care
deals increased
23% last year
and have tripled
since 2007 to
$10.5 billion in
2013.
c
Health Industry Growth In China
7

8. World
Population
Connected
Devices
Connected
Devices
Per Person
500 Million 12.5 Billion 25 Billion 50 Billion
6.3 Billion 6.8 Billion 7.2 Billion 7.6 Billion
0.8 1.84 3.47 6.58
More
connected
devices
than
people
8
Devices Are Connecting Rapidly

9. Pill bottle sensors can connect to a
network and indicate if a patient has
taken medication 9
Remote Monitoring

10. Spending is
projected to
grow from $357
billion in 2011 to
$1 trillion in 2020
Health Care Reform Is In Progress
10

11. The biomedical sector was identified as a strategic industry:
1 Strengthen public health care infrastructure
2 Strengthen healthcare service network
3 Develop comprehensive medical insurance system
4 Improve drug supply system
5 Reform public hospital system
6 Support the development of Chinese medicine
What`s Shaping China`s Health Market12th Five-Year Plan (2011-15)
11

12. Conclusions
12
A time of
significant
change
Opportunity

13. 13