Huge Growth Potential for China’s Ultrasound Market in Undeveloped Areas
Sitting at 1.4 billion in 2017, the Chinese population offers an extremely daunting challenge when it comes to maintaining and providing healthcare within the country. The previous decade saw the country implement major healthcare reforms to improve the state of affairs in relatively underdeveloped areas of the country.
Launched in 2009, the Healthy China 2020 plan was initiated to help increase life expectancy of the region’s populace and reduce the high infant and maternal mortality rates. This program was followed by the Healthy China 2030 plan in 2016. It has now been realized as a health program extremely essential to the social and economic development of the country.
The policies enacted as part of these healthcare reforms in China have helped the country grow as one of the most prominent market for ultrasounds. The Chinese ultrasound market has grown by 10 percent every year following the start of the Health Program in 2009. China currently ranks just second to the United States in ultrasound technology and treatment, with rapid growth hallmarking the recent trends.
The Chinese Hospital System
China’s hospital system has been grouped into three groups or tiers for helping lawmakers and administrators manage the healthcare facilities and the populace. There are three basic tiers, with the third tier accounting for most revenues. Third-tier hospitals, or urban hospitals, are those with over 500 beds in the hospital and top-level care. The second tier comprises of hospitals with 300 beds, and the first tier consists of 100 beds.
China’s ultrasound market has shown growth due to the purchase of advanced ultrasound systems by third-tier systems. Costing more than $120,000 per unit, these systems can only be acquired by hospitals in developed urban centers.
These figures, as astounding as they are, point towards an imbalance in the provision of healthcare facilities in China. Second-tier and first-tier hospitals lack premium ultrasound systems. The ongoing Healthy China 2030 plan aims to rid the country of this very imbalance by establishing a system of adequate healthcare infrastructure.
This interest in the second and third-tier hospitals can be seen in the growth rates of hospitals across the country. Both Tier 1 and Tier 2 hospitals beat the 3rd tier hospitals in growth rate during 2016 and 2017.
Ultrasound Market by Healthcare Facility
Having understood the healthcare market in China, and the implications present in addressing these tiers, we get to see the ultrasound market for these tiers. Almost 45 percent of all ultrasound revenue comes from Tier 3 hospitals, but the growth pattern will certainly transition during the coming years. The growth in this segment will now certainly be driven by the introduction of new tier 3 and tier 2 hospitals.
The provision of premium ultrasound facilities in all hospitals would help in achieving the real objectives of the Healthy China 2030 plan.