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Inside China's Healthcare Reforms: Opportunities for Multinational Pharma

Abstract

In 2009, China's government announced plans to invest RMB1.13 trillion ($180 billion) in expanding and improving healthcare provision, through significant healthcare reforms. These reforms have five key areas of focus:

  • Expansion of medical insurance coverage
  • Establishment of a national essential drug list (EDL)
  • Investment in improved primary healthcare facilities
  • More equal distribution of healthcare provision
  • Public hospital pilot schemes

This massive spending program is rapidly expanding healthcare access for China's 1.3 billion citizens, and has implications for the pharmaceutical industry worldwide.

Report Overview

Inside China's Healthcare Reforms: Opportunities for Multinational Pharma

This comprehensive report goes deep inside China to reveal the ways that recent reforms are changing healthcare for rural and urban citizens. Numerous local experts have been consulted for their insights, including industry experts, government officials, ministry advisers, and formulary managers.

The reader-friendly report explores each key aspect of healthcare reform in turn, clearly explaining what it is, why it was needed, and what progress has been made so far, and then summarising its specific implications for the Pharma industry. As well as covering recent reforms, the report also examines key reform priorities through to 2015.

In addition to a thorough review of reforms and their implications for Pharma, the report provides important insights and tips for building effective relationships with Chinese stakeholders.

Inside China's Healthcare Reforms: Opportunities for Multinational Pharma is a must-have report for anyone with responsibilities or interests in China's healthcare market.

Key Report Features

  • In-depth interviews with local industry experts, including a senior policy maker at the MOHRSS and an adviser to the Ministry of Health
  • Thorough review of the status of key features of the reforms announced and implemented since 2009
  • Analysis of the implications of reforms for foreign pharmaceutical companies wanting to succeed in the Chinese market
  • Details of reform priorities through to 2015, with their implications for Pharma
  • Strategic recommendations for foreign pharmaceutical companies wanting to gain market access in China based on interviews with experts who have been involved in the launch of products in China
  • Analysis of the role of distributors in China and the future of the distribution system following reforms
  • Insight into the tendering process in Chinese hospitals and provinces and how to take part
  • Recommendations of how to structure market access teams effectively in China

Key Benefits

  • Understand the key features of healthcare reform in China and what their implications are for your company's plans for China
  • Understand the role played by the essential drugs list and the national reimbursement drug list, and discover if these are worth accessing
  • Learn about the Chinese government's future reform priorities and understand their likely impacts
  • Learn how to structure market access teams in China
  • Acquire strategies for gaining market access in Chinese provinces and hospitals with a view to gaining market access nationally

Who Should Read This Report?

  • Managers and Executives focused on global business:
    • Emerging Markets
    • Global Pricing
    • Business Development
  • Managers and Executives with international responsibilities and interests:
    • Sales & Marketing
    • Public Affairs
    • Regulatory Affairs
    • Medical Affairs

Key Quotes

"In terms of the aim to achieve universal [health insurance] coverage, this is already 95%, but the basic benefit package is still quite low. Over the next five years the reimbursement ratio will be increased for the three public insurance programmes for those patients admitted to hospital." - Professor Hu Shanlian of Fudan University (Shanghai), an advisor to the Ministry of Health

"The implementation of universal healthcare has greatly improved the ability of the public to use medical services. Generally speaking, this is conducive to the growth performance of pharmaceutical companies." - Dong Chaohui, vice director, Division of Health Insurance, National Institute for Social Security, MOHRSS

"Once the product is licensed and is on sale in China we try to get onto a provincial list. So you start with one province like Beijing or Shanghai... Once you successfully register the product in one provincial list, you move onto another." - Wai Lun Ng, former CFO, AstraZeneca China

Table of Contents

Content Highlights

Executive summary

Introduction

Key features of healthcare reform in China

  • Expansion of insurance coverage
  • Progress so far
    • Implications for the pharmaceutical industry
  • Establishment of the national essential drug list
    • Progress so far
    • Implications for the pharmaceutical industry
  • Revision of the national reimbursement drug list
    • Implications for the pharmaceutical industry
  • Investment in improved medical infrastructure
    • Progress so far
    • Implications for the pharmaceutical industry
  • Hospital finance reforms
    • Progress so far
    • Implications for the pharmaceutical industry
  • Consolidation of the domestic pharmaceutical industry
  • Consolidation of the pharmaceutical distribution industry
    • Engaging with distributors

Future reform priorities 2011-2015

  • Liberalization of the medical services market
  • Catastrophic illness coverage
  • Expansion of zero mark-up

Exploiting the reform opportunity

  • Drug registration process in China
  • Market access
  • One hospital at a time
    • Formulary inclusion
  • One province at a time
  • Soft skills
  • The tendering process
  • Structuring market access teams
  • Conclusions

Conclusions and recommendations

Acknowledgements

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