OVIAMEDTECHWhite PaperNavigating China'sMedTech MarketChallenaes. reforms. and opportunitiesZHENNIE,Head of Med Devices, Global Consulting, IQVIA MedTechNANCY(SHUHUAI)JIN, Engagement Manager, Management Consulting, IQVIAChina
TableofcontentsIntroductiontoChina'sMedTechmarketMounting financial pressures on China's public medical insuranceVolume-based procurement Expandingreach andimpact,Are cost-controlmeasuresreachinga"turningpoint"?Embracing innovationto stay competitive ina changingmarketPrivatehealthcare:Agrowingopportunityamid reformTurningregulatoryuncertaintyintolong-termgrowthstrategiesThe road ahead: How MedTech firms can thrive in China's marketReferencesAbouttheauthors
IntroductiontoChina'sMedTechmarkeChinahasfirmlvestablished itself asthe world'ssecond-laraestmedicaldevice market, with high growth expectations globally. However, given thecomplexities of the local environment and the numerous challenges Med Techcompanies face, where do future opportunities lie?ThisIQVIAMedTech whitepaper explores the currentAsthe largest payer of health services in China, thestateofChina'sMedTechmarket.examininatheNationalHealthcare SecurityAdministration(NHSA)financialpressures reculatorv reforms.emerainahas implemented a series of reforms. Theseincludeopportunities,andproviding insights into howMedTechVolume-Based Procurement (VBP) which lowerscompanies can navigate this complex landscape,the listing price of medical consumables and drugs;DianosisRelated Group(DRG)payment reformswhich aims to curb the excessive growth of medicaMountinq financiallpressures on China's publicitems, which helps optimize the Basic MedicalmedicalinsuranceThe COVID-19pandemicfurther strainedChina'sInrecentyears, China'stotalhealthexpenditure haspopulation.However, total healthexpenditure remains around 7% of GDP; stil below the median level of OECD introdlucing signifcant uncertainty into the locaregulatory environment.countries.At the same time, theslowdownin economicgrowth has led to reducedincome growthforthe BasicMedicalInsurance(BMI)fundExhibit 1:China bascome growth'Unit:BillionRMB3,4803,3363,0922,8732,4422,4852,138+20%1,7931,3081,119+21%969825554200920102011201220132014201520162017201820192002021202203200iqviamedtech.com|1
While the reform isexpectedto continue tieVolume-based procurement:anticipated to proceed in a more stable and graduallExpanding reach and impactmanner.From ahorizontal perspective, VBP continuestoexpand its geographical scope and product varietiesWithVBPbecomina anorm.the scone ofmedicaFromavertical perspective.furtherreductions intheconsumables includes high-value consumables, Iow.absolute price of medical consumables under VBP are value consumables, equipment, as well as In Vitro,becominaless likelv.The pricina of coronarvstents oDiaqnostic(IVD) reagents.Many of these items areapproximately100US dollars and PIVCs at about 60UScovered by alarge-scale inter-provincialVBP alliance.centshas already placed cost pressures onto local andAdditionallw. and unsurprisinalv. the price requlationsand the establishment of se...
