Analysis | Private Chinese speciality hospitals and clinical labs set to profit from health care reforms
Country now has highest growth rate of any elderly population in the world, with the number of people over 60 set to rise by 90pc to 240 million by 2020
Private hospitals, especially those focusing on conditions considered as “minor specialities”, such as cosmetic surgery or eye disease, are predicted to enjoy strong profit growth in the next few years, according to fresh research.
Private clinical labs will also perform well as public hospitals increasingly turn to outsourcing for clinical tests, Citi analysts led by John Yung say in a new research note.
The Chinese government has vowed to reform the country’s hospital system, with overcrowded public facilities struggling to meet fast-growing demand for quality medical care.
To support the development of the country’s private medical sector, the State Council in 2015 ordered local authorities to streamline the approval process for the setting up of private clinics, and offer preferential tax breaks to operators.
Private hospitals specialising in niche areas, including ophthalmology, dentistry and cosmetic surgery, have been the first to benefit from the favourable policies, the Citi analysts say.
