China Health Management Corp. (cnhc.pk)
Health Services
- Health Care Privatization: The Chinese healthcare industry has been one of the fastest growing healthcare industries in the world and is expected to become the fifth largest by 2010. However, government’s share in the total healthcare expenditure is declining gradually, while that of the private sector is increasing. This trend is expected to continue until 2010, creating growth opportunities for private participants in the healthcare industry (Source: Frost and Sullivan). Over the past 25 years, the government reduced its share of healthcare expenditures from 36% to 15%, with patients paying up to two thirds of their medical bills. State-owned hospitals are being changed into private nonprofit or for-profit entities. The vast majority, however, still remain state-owned with only some 1.6% of hospital beds being for-profit (Source: Genetic Engineering and Biotech News). The rapid growth of this industry, combined with the ongoing reduction in government spending, create tremendous opportunities for China Health Management Corp. with a strong presence already in the country through its Richland International Hospital in Kunming City.
- More Affluent Demographic: Company research shows that the health-sensitive high-consuming population in China is expanding by 30% every year with a large market potential. About 2%-5% of consumers in the medical market at present would opt for high-end medical institutions. These consumers are mostly white-collar employees or owners of private enterprises who are relatively better educated and have a higher income. They also have higher expectations for their medical services. However, neither public hospitals nor private medical institutions have met their expectations fully until now with China Health Management.
- Low Barriers to Entry: Sales of Western-type pharmaceuticals in China were $19.2 billion in 2005, and currently, 97% of Chinese products are either generics or copies of new drugs. The market is highly fragmented, with the top 10 companies having only 15% of the business and established local or regional niches. The structure of hospital charges are dramatically different from those in the U.S. with a majority of it going to drugs (45–58%) and equipment and a small proportion to doctor and nursing fees. To promote the privatization of the hospital system, the government is trying to attract foreign companies, which can own up to 70% of a hospital joint venture (Source: Genetic Engineering and Biotech News). This active encouragement of the Chinese government and the high level of industry fragmentation are excellent indicators for the feasibility of China Health Management’s plans for expansion.
- Strong Expected Growth: According to U.S. pharmaceutical consulting firm IMS Health, China's pharmaceutical industry is expected to grow at a rate of 15%-16% to $1.5-1.6 billion in 2007, compared against a global average growth of 5%-6%. Jiang Feng, president of the China Medical Equipment Industry Association, says that the proportion of the whole healthcare industry, including hospitals, medicine and equipment, only accounts for about 3% of gross domestic production in China, while the proportion in developed countries like the United States and Japan is around 10% (Source: ChinaDaily.com). These indicators demonstrate tremendous room for development in this sector, and China Health Management is aggressively developing its business model in order to take advantage of the fortuitous conditions in the region.
Company Contact Information
Shangdu International Building
Road Extension of Ku
Yunnan Province, Kunming, ,
CHINA
- Phone:(86) 871-5744205
- Fax:n/a
- E-mail:info@chinahealthcorp.com
On-line contact form
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