Change of Healthcare Service: From Scale to Value

In the past, the healthcare service in China focused on curing. With the quick economic development and people’s wealth growth, the service is transforming from “medical service” to “health management”. The consumers pay more attentions to privacy and are willing to pay premium for better service and quality medical skills, which drives the growth of high-end healthcare service. Chronic disease and health management field have great potential. Consumer healthcare gets more attention from capital.

[Yada Insight]

Along with the aging trend, urbanization, wealth growth and good coverage of basic medical insurance, China’s healthcare market is rapidly expanding, based on the existing huge volume. In 2016, China’s total health spending reached RMB 4.6trillion，remaining 13.5% compound growth rate in the past three years. The total health spending accounts for 6.2% of the total GDP, which is lower than the global average level 10.5%. Taking into the huge population and consumption base, it is not hard to see there will be huge upgrading space in China’s healthcare market.