China’s economic and social reforms over the past 25 years have met tremendous success. However, the development of the healthcare sector is now far behind its economic development.1 A review of China’s key health indicators makes clear the case for change. Life expectancy and infant mortality trends, for example, illustrate that although China’s healthcare system has made progress over the last ten years, improvements have slowed recently.2 Similarly, indicators such as the reported incidence and mortality rates from infectious diseases have increased in recent years.3 Inadequate spending is only part of the problem. Just as serious are the lack of access to affordable healthcare, the inefficient use of healthcare resources and a lack of high-quality patient care. Without changes to the current system, more than 500 million Chinese will continue to find medical treatment out of their reach, due to the high cost of seeing a doctor.4 On the bright side, the efficient reallocation of even relatively small amounts of money can go a long way to improving access to affordable healthcare for literally hundreds of millions of Chinese, especially in rural areas. Improving the healthcare system is important to raise living standards, and is a key requirement to achieve the “xiao kang” objectives (in which most of China’s people would be “moderately well-off”) and harmonious society as outlined by the government.5 The healthcare sector in China will need to undergo drastic changes to achieve the government’s objectives. The Chinese government clearly understands the magnitude of the problem and has articulated its commitment to closing the significant gaps in the healthcare sector and has emphasized the need for public and private sector cooperation.6 Many hospitals are trying to thrive and grow in this environment, with different types of hospitals facing different challenges. As such, different hospitals have adopted different strategies to grow and in some cases, simply to survive (see Figure 1). Regardless of the type of hospital, a common theme is the need to improve the quality of care while lowering costs.  There is no simple solution. Challenging questions must be addressed to fundamentally improve healthcare in China: • What changes need to occur in the short term to improve the situation while longer-term challenges are being addressed? • What is the role of the government and other players across the healthcare ecosystem? • What can service providers do to improve delivery of healthcare services? • How can technology be leveraged to improve the management and delivery of healthcare? The IBM Institute for Business Value in China recently completed a comprehensive study of China’s healthcare industry to help answer these questions. We identified the sector’s key challenges, their root causes and potential solutions to transform China’s healthcare system. For instance, the use of technology, such as establishing a national health information network, and using innovative clinical solutions, such as electronic medical records, can help to improve effectiveness of health services in China. Drawing on IBM experience in working with healthcare systems in developed and developing countries worldwide, we present a bold vision for the future that can serve as a platform for dialogue among key players across China’s healthcare system. Looking forward to 2010, we envision a healthcare system that provides equitable, affordable and high-quality patient care to China’s citizens. Achieving this vision hinges upon – above all – government-led initiatives that will drive concerted change by players across the healthcare system. Many of these changes can begin tod ay to prepare for the future environment and bring China one step closer to a xiao kang, harmonious society. References 1 Minister of Health, Gao Qiang. July 1, 2005. Ministry of Health Press Release. July 2, 2005. 2 World Health Organization (WHO). “Core Health Indicators, 2003.” 3 China Health Statistics Summary, 2005. This document is available from the Chinese Ministry of Health website (in Chinese only). 4 Over one-third of Chinese population priced out of medical treatment. World Markets Research Centre Daily Analysis. November 23, 2004. 5 Comrade Jiang Zemin speech during 16th National Congress of the Communist Party of China. Speech entitled ”Developing a harmonious, xiao kang society”. 6 Minister of Health, Gao Qiang. July 1, 2005. Ministry of Health Press Release. July 2, 2005.
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