Healthcare Reform in China

Table of Contents

1. EXECUTIVE SUMMARY 4

2. CHINA’S HEALTHCARE SYSTEM 8

2.1. INTRODUCTION: CHINA'S HEALTH PROTECTION SYSTEM 8
2.1.1 The Rural Health Protection System 8
2.1.2 The Urban Health Protection System 8
2.1.3. China's Health Care Delivery System 9
2.1.4. Health System Reforms in China 10
2.1.5. Current National Policy Framework 15
2.1.6. Prior and Ongoing Assistance 16
2.2. BACKGROUND INFORMATION 17
Problems With the Current Healthcare System 19
2.3. OVERVIEW OF THE CURRENT HEALTHCARE SYSTEM 21
2.3.1 Structures Of the Current Healthcare System 21
2.3.2 Differences Between Basic Health Insurance Systems in Cities/Towns, Co-Operative Health Service System in Rural Areas & Commercial Medical Insurance 22

3. RESPONSIBLE GOVERNMENT DEPARTMENTS AND OFFICIALS 23
3.1 MAJOR MINISTRIES AND GOVERNMENT DEPARTMENTS INVOLVED 23
3.2. MODIFIED GOVERNMENT POLICIES AND REGULATIONS UNDER THE REFORM 26

4. OVERVIEW OF THE NEW HEALTHCARE SYSTEM 27
4.1 MAIN CONTENTS OF THE REFORM 27
4.2 ACHIEVEMENTS UP-TO-DATE 29

5. IMPACT ANALYSIS OF THE REFORM 30
5.1. MEDICAL INSTITUTIONS (HOSPITALS & PRIVATE CLINICS) 30
5.2 DRUG MANUFACTURERS 31
5.3 WHOLESALE DRUG DISTRIBUTORS 32
5.4 DRUG PURCHASE IN HOSPITALS 33
5.5. RETAIL CHAIN DRUG STORES 37
5.6 FOREIGN INSURANCE COMPANIES 37

6. OPPORTUNITY: MORE PRIVATE, FOREIGN PLAYERS EXPECTED IN HEALTHCARE 38

7. REVIEW HISTORY, FORESEE PROBLEM - WHEN ENTERING CHINA’S HEALTHCARE MARKET 40