The transformation of the reimbursement system will result in numerous structural changes in the healthcare sector. Pressured by both financial constraint and growing demand, a multi-tiered Medicare system will develop and change the way people seek medical care. This will encourage doctors, traditionally tied to a single public hospital, to practice across multiple institutions, in both public and private institutions. Private clinics and hospitals, with additional medical professionals, will be able to address patients’ increasing demands. With higher medical coverage, it will result in the growth of alternative medical institutions such as high-end specialty clinics, out-patient day-surgery centers, private specialty hospitals and clinic chains.
Other trends include a shift from treatment to prevention, with more people interested in proactive health management plans. This present opportunities for the growth of third-party healthcare management administrators, preventive healthcare service providers, and the establishment of a primary care system in China. As hospitals struggled with poor management and inefficient administration, we will see the divestment (or spin-out) and outsourcing of non-core services such as third-party diagnostics, medical devices sterilization services, rehabilitation, logistics solutions, and human resource management from large tertiary hospitals. These adjacent independent businesses will develop to serve the tertiary hospitals to increase efficiency and quality, and reduce cost.