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Introduction To The Chinese Medical
Ecosystem
For Wellness333.com Specialists
YC Xia
www.wellness333,com
Admin@Wellness333.com
Chinese Medical Ecosystem in Brief
Structure
Main Actors
Coverage
Financing
More……
Medical Service in China – Structure
Principally a network of hospitals each bear a national
grading based on level of facilities, functions, technology
advancement and specialties: I, II, III –reviewed periodically
Mostly public with increasing number of private institutions,
few individual clinics
Continuous evolution and reform of the medical regime
Government supervision and centralized guidelines
Provincial implementation with certain autonomy
Medical Ecosystem in China – Main Actors
Hospitals
& Doctors
Health
Bureau
Pharmaceuticals
Companies
Patients
Aid Station
& Clinics
Drug Administration
Medical Service in China – Coverage 1
Basic medical coverage
o 全民基本医保≈Sécurité Sociale en France≈Medicare & Medicaid
Implemented not until 2012
One patient paid 30000 € of medical expense in 2009 for leukemia
treatment, her medical coverage started in 2010 and received 15000 €
reimbursement
Medical Service in China – Coverage 2
Private medical insurance offers exist, especially for
critical illness
Mostly capped for reimbursement amount, patients always
need to pay a portion
Reimbursement level varies according to regime for both
private & public
Medical Service in China – Financing Model
• Medical institutions receive limited public subsidies due to
fiscal burden
• 50% of total medical expenses on medication (vs. 20% in
other countries)
• Extremely low consultation charge <1 € to 10 €
• Funding model: 以药补医
(Medicine sales subsidize consultation)
Breakeven Insufficient
public funding
Government
permitted
additional
income channels
Medical Service in China – To Improve
 Medical service providers improperly leverage information
asymmetry advantage over patients
– Over-prescribe medication
– Advise costly treatments that are not strict necessity
 Overall low satisfaction from patients both low and high
income, increased accidents and conflicts
Doctor-Patient mistrust cooperation
Medical Service in China – Doctors Dilemma
• Doctors - overwhelming majority state employed at public
hospitals
• Low base salary(<1000€) + variable bonus + commission on
prescribed medicine and additional income from surgery
which represent major portion
• Medical responsibility insurance has just started to develop,
most doctors bear their own accident risk --pay out of their own
pocket for accident settlement
How We Fill the Gap
 Peer pressure does help improve treatment –experience
showed over 52% patients had their treatment modified after
obtaining a second medical opinion
 Clear and structured audit trail of doctor/patient exchange
 Provide impartial and tailored second medical advice –
empower the patient and his family
What Patients May Expect
Doctor, don’t hesitate to give frank advice!
Is my
treatment
appropriate?
Do I need this
operation
now?
What is the
secondary effect
of this medicine?
Can it be a
medical
accident?
……
……
Key Elements of Patient/Doctor Exchange
Doctors are experts in diseases
Patients are experts of their own body
Introduction to the chinese medical ecosystem

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Introduction to the chinese medical ecosystem

  • 1. Introduction To The Chinese Medical Ecosystem For Wellness333.com Specialists YC Xia www.wellness333,com Admin@Wellness333.com
  • 2. Chinese Medical Ecosystem in Brief Structure Main Actors Coverage Financing More……
  • 3. Medical Service in China – Structure Principally a network of hospitals each bear a national grading based on level of facilities, functions, technology advancement and specialties: I, II, III –reviewed periodically Mostly public with increasing number of private institutions, few individual clinics Continuous evolution and reform of the medical regime Government supervision and centralized guidelines Provincial implementation with certain autonomy
  • 4. Medical Ecosystem in China – Main Actors Hospitals & Doctors Health Bureau Pharmaceuticals Companies Patients Aid Station & Clinics Drug Administration
  • 5. Medical Service in China – Coverage 1 Basic medical coverage o 全民基本医保≈Sécurité Sociale en France≈Medicare & Medicaid Implemented not until 2012 One patient paid 30000 € of medical expense in 2009 for leukemia treatment, her medical coverage started in 2010 and received 15000 € reimbursement
  • 6. Medical Service in China – Coverage 2 Private medical insurance offers exist, especially for critical illness Mostly capped for reimbursement amount, patients always need to pay a portion Reimbursement level varies according to regime for both private & public
  • 7. Medical Service in China – Financing Model • Medical institutions receive limited public subsidies due to fiscal burden • 50% of total medical expenses on medication (vs. 20% in other countries) • Extremely low consultation charge <1 € to 10 € • Funding model: 以药补医 (Medicine sales subsidize consultation) Breakeven Insufficient public funding Government permitted additional income channels
  • 8. Medical Service in China – To Improve  Medical service providers improperly leverage information asymmetry advantage over patients – Over-prescribe medication – Advise costly treatments that are not strict necessity  Overall low satisfaction from patients both low and high income, increased accidents and conflicts Doctor-Patient mistrust cooperation
  • 9. Medical Service in China – Doctors Dilemma • Doctors - overwhelming majority state employed at public hospitals • Low base salary(<1000€) + variable bonus + commission on prescribed medicine and additional income from surgery which represent major portion • Medical responsibility insurance has just started to develop, most doctors bear their own accident risk --pay out of their own pocket for accident settlement
  • 10. How We Fill the Gap  Peer pressure does help improve treatment –experience showed over 52% patients had their treatment modified after obtaining a second medical opinion  Clear and structured audit trail of doctor/patient exchange  Provide impartial and tailored second medical advice – empower the patient and his family
  • 11. What Patients May Expect Doctor, don’t hesitate to give frank advice! Is my treatment appropriate? Do I need this operation now? What is the secondary effect of this medicine? Can it be a medical accident? …… ……
  • 12. Key Elements of Patient/Doctor Exchange Doctors are experts in diseases Patients are experts of their own body