Inside China’s Healthcare Reforms: Opportunities for Multinational Pharma
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:
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 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
Key Questions Answered
- 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
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
- 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
- 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
“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
Key Questions Answered
- What are the key features of healthcare reform in China?
- What are the implications of those key reforms for the Pharma industry?
- How can my company take advantage of the increased investment in healthcare provision in China?
- What impact have the essential drug list and investments in grassroots healthcare infrastructure had on prescribing patterns in China?
- Who are the key stakeholders at the hospital, city, and provincial level that my company needs to influence to gain market access in China?
- What will be the impact of the consolidation of the Chinese domestic pharmaceutical industry on foreign companies looking to gain access to the Chinese market?
- Dr Hu Shanlian - Professor of Health Economics at Fudan University Shanghai, advisor to the Ministry of Health
- Wai Lun Ng - former CFO, AstraZeneca China
- David Twinberrow - VP Strategy and Market Development, IMS Health China
- Joseph Cho - managing director, the China R&D-based Pharmaceutical Association Committee, and chairman of the board, Astellas Pharma China
- Luo Shizhong - vice manager, International Department, Shandong Xinhua
- Dong Chaohui - vice director, Division of Health Insurance, National Institute for Social Security, MOHRSS
- Matthew Chervenak - CEO, General Biologic
- Ben Shankland - director, Altarnum Consulting
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
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
