Presentation for mHealth Israel meetup, Feb 16, 2016: How Does China Provide Healthcare for 1.4 B People? Ying Wang, PwC Israel. "Kan Bing Gui, Kan Bing Nan", means it is difficult and expensive to obtain quality healthcare in China.

1. February 2016
Ying Wang, Business Development Manager,
PwC Israel
www.pwc.com
How Does China Provide
Healthcare for 1.4 B People?

2. TCM vs. Western Medicine in China
Physicians (per 1,000 people, 2009)
Total: 1.8
TCM: 0.3
Q: % of visits to TCM hospitals/clinics :
A: 20%
Q: % of TCM medicine prescriptions/total prescriptions :
A: 25%
Data source: The World Bank, State Administration of Traditional Chinese Medicine
Slide 2

3. Hospitals in China
• Total # of hospitals in 2015: 26, 479
• Public Vs. Private: 50.3% V.S. 49.7%
• Hospital visits (Jan. – May. 2015) : 1.2152 B
Q: % of visits to public V.S. private hospitals?
A: 89% Vs. 11%
Q: # of specialized hospitals?
A: 5449
Q: Who are the most profitable ones?
A: By revenue: Tumor Hospitals
By profit margin: beauty hospitals, ophthalmic hospitals, and stomatological hospitals
Source: China Hospital Industry Report, 2015-2018, www.reportlinker.com
Slide 3

4. Classifications of Chinese Hospitals
Slide 4
Level Grade
Criteria (functions, facilities, technology capabilities,
R&D abilities, education)
Indicators: size, technical levels, medical devices, management level,
quality of the treatment, etc.
Primary A
20 - 100 beds(Basic community level) B
C
Secondary A
101 - 500 beds(Cross commnuities, regional
level)
B
C
Tiertiary AAA (Extra A)
> 500 beds(Cross
regions/provinces/cities,
country level)
A
B
C
Source: Baidu Baike

5. Rural VS. Urban China
Rural population (% of total population) in 2014: 46%
Ratio of urban to rural per capita health spending:
• 1990’s <2
• 2000 3.63
• 2010 2.67
Slide 5
Data source: The World Bank, China National Health Development Research Center

6. Status Quo of Healthcare in China
看病贵，看病难
(Kan Bing Gui, Kan Bing Nan）
Translation: It is difficult and expensive to obtain good healthcare!
Slide 6

7. Healthcare Reform in China
• Basic universal health insurance coverage
• Encouraging foreign capital into the Chinese hospitals systems
• Increase the quality of general practitioners
• Piloting new revenue structures to eliminate the profit-driven mechanism of public hospitals
• Trying to increase the quality of the community level care giving facilities to ease pressure from the
hospitals
• Encouraging the private insurance market
•Encouraging life style changes to prevent life style related diseases
… and more
Slide 7

8. What Has Been Happening?
Slide 8
Data Source: The World Bank
28
26
24
22
20 19
17 16 15 14 13 12 11 10 9
73 73 73 74 74 74 74 75 75 75 75 75 75
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Life Expectancy and Infant Mortality Rate in China
Mortality rate, infant (per 1,000 live births) Life expectancy at birth, total (years)

9. What Has Been Happening?
Slide 9
4.6 4.8 4.8 4.7 4.7 4.6 4.4 4.6 5.1 5 5.1 5.4 5.6
35.6 35.8 36.2 38 38.8 40.7
46.9
49.9
52.5 54.3 55.9 56 55.8
93.1
90
87.6 86.5 85.3
83.1 83
80.8 78.9 77.2 78.8 78 76.7
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Health Expenditure in China
Health expenditure as a % of GDP
Health expenditure, public (% of total health expenditure)
Out-of-pocket health expenditure (% of private expenditure on health)
Data Source: The World Bank

10. PwC Israel
About PwC Israel
PwC Israel is a leading professional services firm in the
Israeli market. Established in 1924, the
firm currently has 56 partners and about
1,200 professionals

11. PwC Israel
PwC is the world leader in professional services…
PwC is the leading global assurance, consulting, and tax services firm
PwC is structured along three dimensions for
full service capability
No. 1 Global
Merger & Acquisition
(M&A) Advisory
Kennedy Information
No. 1 Global
Business Consulting
firm
IDC & Kennedy Information
No. 1 Product
and Service Launch
Operations
Kennedy Information
No. 1 Of 8 named
to Kennedy Vanguard
of Supply Chain
Consulting
Kennedy Information
No. 1 In
Innovation Solutions
Kennedy Information
No. 1 In
Operations Strategy
IDC (2012)
PwC Advisory continues to expand services
offering through acquisitions (Booze & Co, PRTM,
Diamond, BearingPoint, Ants’ Eye View, etc..)
• Support ~96% of Fortune 1000 technology companies
• 10,000+ technology professionals worldwide
• Deep expertise and strong capabilities in all major regions
Global Technology Sector Leader
More than 208,500 people in 776 offices located in 157 countries in firms across the PwC network share
their thinking, experience and solutions to develop fresh perspectives and practical advice
Revenue: US$ 33.9 billion (2014)
Slide 11

12. ©2016 Kesselman & Kesselman. All rights reserved.
In this document, “PwC Israel” refers to Kesselman & Kesselman, which is a member firm of
PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Please
see www.pwc.com/structure for further details.
PwC Israel helps organisations and individuals create the value they’re looking for. We’re a member of the
PwC network of in 157 countries with more than 208,000 people. We’re committed to delivering quality in
assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at
www.pwc.com/il
This content is for general information purposes only, and should not be used as a substitute for consultation
with professional advisors.
China Business Group @ PwC Israel
Eitan Glazer,Partner,PwC Israel
Tel: +972 3 7954664
Email: eitan.glazer@il.pwc.com
Contact Us:
Ying Wang,Business Development
Manager,PwC Israel
Tel: +972 3 7954869/+972 54 6692040
Email: wang.ying@il.pwc.com